{"operation":"document","citation":"CPF 52023009NOPV","title":"INTERIOR GAS UTILITY — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-03-01","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.1007(c), 192.1007(d), 192.16(b)(1), 192.283(a), 192.453, 192.481(a)(1), 192.481(a)(2), 192.605(a), 192.625(f)(1), 192.625(f)(2), 192.739(a)(3), 192.743(a), 192.747(a), 192.756.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023009nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023009nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023009nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52023009NOPV","body":"Notice of Probable Violation involving INTERIOR GAS UTILITY. PHMSA's enforcement data identifies the cited regulations as 192.1007(c),  192.1007(d),  192.16(b)(1),  192.283(a),  192.453,  192.481(a)(1),  192.481(a)(2),  192.605(a),  192.625(f)(1),  192.625(f)(2),  192.739(a)(3),  192.743(a),  192.747(a),  192.756. The case was opened on 2023-03-01 and is reported as closed as of 2025-09-08. Proposed civil penalty: $107,400. Assessed civil penalty: $37,920. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52023009NOPV_Closure Letter_09082025_(21-217219).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023009NOPV/52023009NOPV_Closure%20Letter_09082025_(21-217219).pdf\n\n52023009NOPV_Closure Letter_09082025_(21-217219)_txt.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023009NOPV/52023009NOPV_Closure%20Letter_09082025_(21-217219)_txt.pdf\n\n52023009NOPV_Consent Agreement and Order_10242023_(21-217219).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023009NOPV/52023009NOPV_Consent%20Agreement%20and%20Order_10242023_(21-217219).pdf\n\n52023009NOPV_Consent Agreement and Order_10242023_(21-217219)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023009NOPV/52023009NOPV_Consent%20Agreement%20and%20Order_10242023_(21-217219)_text.pdf\n\n52023009NOPV_Operator Response to Notice_03302023_(21-217219).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023009NOPV/52023009NOPV_Operator%20Response%20to%20Notice_03302023_(21-217219).pdf\n\n52023009NOPV_Operator Withdrawal of Hearing Request_10232023_(21-217219).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023009NOPV/52023009NOPV_Operator%20Withdrawal%20of%20Hearing%20Request_10232023_(21-217219).pdf\n\n52023009NOPV_PCP PCO_03012023_(21-217219).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023009NOPV/52023009NOPV_PCP%20PCO_03012023_(21-217219).pdf\n\n52023009NOPV_PCP PCO_03012023_(21-217219)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023009NOPV/52023009NOPV_PCP%20PCO_03012023_(21-217219)_text.pdf\n\n52023009NOPV_PHC Hearing Scheduled_05232023_(21-217219).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023009NOPV/52023009NOPV_PHC%20Hearing%20Scheduled_05232023_(21-217219).pdf\n\n52023009NOPV_PHC Hearing Scheduled_05232023_(21-217219)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023009NOPV/52023009NOPV_PHC%20Hearing%20Scheduled_05232023_(21-217219)_text.pdf\n\n52023009NOPV_Closure Letter_09082025_(21-217219).pdf\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\nVIA ELECTRONIC MAIL TO: esudduth@interiorgas.com\n12300 W. Dakota Ave., Suite 340\nLakewood, CO 80228\nSeptember 8, 2025\nMs. Elena Sudduth\nGeneral Manager\nInterior Gas Utility\n2025 Phillips Field Road\nFairbanks AK, 99709\nCPF 5-2023-009-NOPV\nClosure Letter\nDear Ms. Sudduth:\nOn October 24, 2023, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued a Consent Order incorporating the terms of the Consent Agreement between PHMSA and\nthe Interior Gas Utility (IGU) in the above-referenced case. This Order included a Compliance\nOrder requirement for IGU to take certain corrective actions.\nPer the terms of the Consent Agreement, the Consent Agreement would terminate once the\nCompliance Order described in Section V of the Consent Agreement was satisfied, as determined\nby the Director, Western Region, PHMSA. On August 18, 2025, IGU submitted to PHMSA the\nremainder of the documentation demonstrating the identified deficiencies had been remediated,\nsatisfying the Compliance Order.\nAccordingly, the Consent Agreement is terminated, and this case is now closed. Thank you for\nyour cooperation in this matter.\n\n\n\nSincerely,\nDustin Hubbard\nDirector, Western Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 H. Keogh (#21-217219)\nGeorge Deal, Director of Operations, Interior Gas Utility - sdeal@interiorgas.com\n\n52023009NOPV_PHC Hearing Scheduled_05232023_(21-217219)_text.pdf\n\nMay 23, 2023\nVIA ELECTRONIC MAIL TO: dwbritton@interiorgas.com and dustin.hubbard@dot.gov\nMr. Daniel Britton\nGeneral Manager\nInterior Gas Utility\n2525 Phillips Field Road\nFairbanks, AK 99709\nMr. Dustin Hubbard\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\n12300 W. Dakota Avenue, Suite 110\nLakewood, CO 80228\nRe: Notice of Hearing, Interior Gas Utility\nCPF No. 5-2023-009-NOPV\nDear Mr. Britton and Mr. Hubbard:\nIn accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of\nProbable Violation, Proposed Civil Penalty, and Proposed Compliance Order issued by the Pipeline\nand Hazardous Materials Safety Administration in the above-referenced case. The hearing will take\nplace on October 25, 2023, beginning at 8:30 a.m. Alaska Time.\nThe hearing will be held via videoconference. I will provide the videoconference information prior\nto the hearing. At least 10 calendar days prior to the hearing (or by October 16, 2023), both parties\nmust submit and exchange any additional written materials they intend to present at the hearing.\nPlease include the name and email address of each attendee as well. This information should be\nprovided electronically. Materials not submitted by this date may be excluded.\nIf you have any questions, please do not hesitate to contact me.\nSincerely,\nLarry White\nPresiding Official\n\n\n\ncc: Mr. Zane Wilson, Counsel, Alaska Law\nzane@alaskalaw.com\nMr. Joseph Hainline, Counsel, Western Region, Office of Pipeline Safety,\njoseph.hainline@dot.gov\n\n52023009NOPV_Consent Agreement and Order_10242023_(21-217219)_text.pdf\n\nOctober 24, 2023\nVIA ELECTRONIC MAIL TO: mrockwell@interiorgas.com\nMark Rockwell\nDirector, Operations\nInterior Gas Utility\n2525 Phillips Field Road\nFairbanks, Alaska 99709\nCPF No. 5-2023-009-NOPV\nDear Mr. Rockwell:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement between\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA) and Interior Gas Utility,\nwhich was executed on October 23, 2023. Service of the Consent Order and Consent Agreement\nby electronic mail is deemed effective upon the date of transmission and acknowledgement of\nreceipt, or as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosures: Consent Order and Consent Agreement\ncc: Mr. Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA\nMr. Daniel Britton, General Manager, Interior Gas Utility, dwbritton@interiorgas.com\nMs. Elena Sudduth, Deputy General Manager, Interior Gas Utility,\nesudduth@interiorgas.com\nMr. Zane Wilson, Outside Counsel for Interior Gas Utility, zane@alaskalaw.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 GAS UTILITY, ) CPF No. 5-2023-009-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nBy letter dated March 1, 2023, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Probable Violation, Proposed\nCivil Penalty and Proposed Compliance Order (Notice) to Interior Gas Utility (IGU or\nRespondent).\nIn response to the Notice, Respondent contested the underlying violations on Items 1, 3, 4, 6, and\n7, and requested a hearing on Items 4, 6, and 7, contesting the underlying violations and the\nproposed civil penalty. IGU also asked for the opportunity to meet informally with PHMSA to\ndiscuss the contested Items in the Notice. Respondent and PHMSA (The Parties) subsequently\nmet to discuss the issues raised in the Response. As a result of those discussions, as explained in\nmore detail below, the Parties have agreed to a Consent Agreement by which PHMSA has\nagreed to reduce the civil penalties to $37,920.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nConsent Order. IGU is hereby ordered to comply with the terms of the Consent Agreement\npursuant to its terms. Pursuant to 49 U.S.C. § 60101, et seq., failure to comply with this Consent\nOrder may result in the assessment of civil penalties as set forth in 49 U.S.C. § 60122 and 49\nC.F.R. § 190.223, or in referral to the Attorney General for appropriate relief in a district court of\nthe United States.\nThe terms and conditions of this Consent Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\nOctober 24, 2023\n______________________________ ______________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\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 GAS UTILITY, ) CPF No. 5-2023-009-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT AGREEMENT\nFrom August 2 through 6, 2021, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code (U.S.C.), conducted an on-site pipeline safety inspection of the facilities and\nrecords of Interior Gas Utility’s (IGU or Respondent) distribution system Fairbanks, Alaska.\nAs a result of the inspection, the Director, Western Region, OPS (Director), issued to\nRespondent, by letter dated March 1, 2023, a Notice of Probable Violation, Proposed\nCompliance Order and Proposed Civil Penalty (Notice), which also included a warning pursuant\nto 49 C.F.R. § 190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding\nthat IGU committed violations of 8 provisions of 49 C.F.R. § 192 (Items 1, 3, 4, 6, 7, 8, 9, and\n11), and proposed ordering Respondent to take certain measures to correct the alleged violations\nand a civil penalty of $107,400. The other probable violations (Items 2, 5, 10 and 12) were\nbrought as warnings, advising the operator to correct the probable violations or face potential\nfuture enforcement action.\nIGU responded to the Notice by letter dated March 30, 2023 (Response). The company\ncontested the underlying violations and the proposed civil penalty, arguing that as a small\nbusiness, IGU’s ability to conduct business would be adversely affected if required to pay the\nfull civil penalties.\nPHMSA and Respondent (the Parties) subsequently met to discuss the issues raised in the\nResponse. As a result of those discussions and as explained in more detail below, PHMSA has\nagreed to reduce the civil penalties to $37,920.\nHaving agreed that settlement of this proceeding will avoid further administrative proceedings or\nlitigation and will serve the public interest by promoting safety and protection of the\nenvironment, pursuant to 49 U.S.C. § 60101, et seq. and 49 C.F.R. Part 190, and upon consent\nand agreement, the Parties hereby agree as follows:\n\n\n\nI. General Provisions\n1. Respondent acknowledges that as the operator of the pipeline facilities subject to\nthe Notice, Respondent and its referenced pipeline facilities are subject to the jurisdiction of the\nFederal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative\norders issued thereunder. For purposes of this Consent Agreement (Agreement), Respondent\nacknowledges that it received proper notice of PHMSA’s action in this proceeding and that the\nNotice states claims upon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq.,\nand the regulations and orders issued thereunder.\n2. After Respondent returns this signed Agreement to PHMSA, the Agency’s\nrepresentative will present it to the Associate Administrator for Pipeline Safety, recommending\nthat the Associate Administrator adopt the terms of this Agreement by issuing an administrative\norder (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement\nconstitute an offer of settlement until accepted by the Associate Administrator. Once accepted,\nthe Associate Administrator will issue a Consent Order incorporating the terms of this Agreement.\n3. Respondent consents to the issuance of the Consent Order, and hereby waives any\nfurther procedural requirements with respect to its issuance. Respondent waives all rights to\ncontest the adequacy of notice, or the validity of the Consent Order or this Agreement, including\nall rights to administrative or judicial hearings or appeals, except for the Dispute Resolution\nprovisions set forth herein. Respondent agrees to withdraw its request for an administrative\nhearing regarding the Notice.\n4. This Agreement shall apply to and be binding upon PHMSA and Respondent, its\nofficers, directors, and employees, and its successors, assigns, or other entities or persons\notherwise bound by law. Respondent agrees to provide a copy of this Agreement and any\nincorporated work plans and schedules to all of Respondent’s officers, employees, and agents\nwhose duties might reasonably include compliance with this Agreement.\n5. This Agreement constitutes the final, complete and exclusive agreement and\nunderstanding between the Parties with respect to the settlement embodied in this Agreement.\nThe Parties acknowledge that there are no representations, agreements or understandings relating\nto settlement other than those expressly contained in this Agreement, except that the terms of this\nAgreement may be construed by reference to the Notice.\n6. Nothing in this Agreement affects or relieves Respondent of its responsibility to\ncomply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101,\net seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters\nPHMSA's right of access, entry, inspection, and information gathering or PHMSA's authority to\nbring enforcement actions against Respondent pursuant to the Federal pipeline safety laws, the\nregulations and orders issued thereunder, or any other provision of Federal or State law.\n7. For all transfers of ownership or operating responsibility of Respondent’s pipeline\nsystem referenced herein, Respondent will provide a copy of this Agreement to the prospective\n\n\n\ntransferee at least 30 days prior to such transfer. Respondent will provide written notice of the\ntransfer to the Director no later than 60 days after the transfer occurs.\n8. This Agreement does not waive or modify any Federal, State, or local laws or\nregulations that are applicable to Respondent’s pipeline systems. This Agreement is not a\npermit, or a modification of any permit, under any Federal, State, or local laws or regulations.\nRespondent remains responsible for achieving and maintaining compliance with all applicable\nFederal, State, and local laws, regulations and permits.\n9. This Agreement does not create rights in, or grant any cause of action to, any third\nparty not party to this Agreement. The U.S. Department of Transportation is not liable for any\ninjuries or damages to persons or property arising from acts or omissions of Respondent or its\nofficers, employees, or agents carrying out the work required by this Agreement. Respondent\nagrees to hold harmless the U.S. Department of Transportation, its officers, employees, agents,\nand representatives from any and all causes of action arising from any acts or omissions of\nRespondent or its contractors in carrying out any work required by this Agreement.\n10. Except as set forth herein, this Agreement does not constitute a finding of\nviolation of any other federal law or regulation and may not be used in any civil proceeding of\nany kind as evidence or proof of any fact, fault or liability, or as evidence of a violation of any\nlaw, rule, regulation, or requirement, except in a proceeding to enforce the provisions of this\nAgreement or in future PHMSA enforcement actions.\nII. Findings of Violation:\n11. Item 1 - 49 C.F.R. § 192.16(b)(1): The Notice alleged IGU did not have a\ncustomer notification process in place that satisfied the requirements of the pipeline safety\nregulations. Specifically, the Notice alleged that IGU could not provide any documentation that\nit had notified customers that it did not maintain their buried piping as required. Respondent\ncontested the violation, stating that it did not believe that the notification requirement was\nnecessary for the vast majority of its customers as the customers did not have any buried piping.\nHowever, IGU stated that where it was appropriate, it took action as outlined in its Response.1\nAs such, PHMSA finds a violation of 49 C.F.R. § 192.16(b)(1).\n12. Item 3 - 49 C.F.R. § 192.453: The Notice alleged IGU did not have any\npersonnel who were qualified to conduct atmospheric corrosion inspections. Specifically, the\nNotice alleged that IGU stated that a course that was specific to buried pipe was adequate\ntraining to conduct atmospheric corrosion inspections. In its Response, IGU contested the\nviolation and provided an explanation. IGU stated that it utilizes NACE certified inspectors when\nconducting atmospheric corrosion inspections at distribution header sites. They also stated that\nthey trained IGU personnel in 2022 and 2023 on conducting atmospheric corrosion inspection at\nother parts of their system. However, the inspection was conducted in 2021. IGU’s Response did\nnot refute the allegations in the Notice. As such, PHMSA finds a violation of 49 C.F.R. §\n192.453.\n1 See Response at 3.\n\n\n\n13. Item 4 - 49 C.F.R. § 192.481(a): The Notice alleged IGU personnel did not\ninspect and evaluate IGU’s aboveground piping for atmospheric corrosion at the intervals\nrequired. Specifically, the Notice alleged that IGU’s records for the year of 2019 were\ninsufficient to demonstrate compliance as the records lacked necessary information including\nwhether an inspection occurred, the date of the inspection, who completed the inspection,\nwhether the inspector looked for corrosion, and the findings of the inspection. In its Response,\nIGU contested the violation, asserting that due to the climate of Fairbanks and North Pole only\nlight surface oxides tend to form on the pipelines, but acknowledged that the inspections were\nnot well documented because that it conducts the inspections in conjunction with routine meter\ninspections. IGU also stated it took immediate action to remediate the issue after receiving the\nNotice. As IGU acknowledged it could not provide records demonstrating compliance, PHMSA\nfinds a violation of 49 C.F.R. § 19.481(a).\n14. Item 6 - 49 C.F.R. § 192.625(f)(1)(2): The Notice alleged IGU did not conduct\nperiodic sampling to verify the proper concentration of odorant in the North Pole distribution\nsystem. Specifically, the Notice alleged that at the time of the inspection, IGU could not\ndemonstrate that it had sampled odorant levels for the North Pole distribution system, which was\ncommissioned in January 2021. In its Response, IGU contested the violation and maintained that\nit was confident it had maintained proper odorant concentrations as required. However, IGU also\nstated in its Response that all the written records2could not be located, and provided a record\nshowing odorant checks first were done on the North Pole system on August 3, 2021. As IGU\nacknowledged it could not provide records demonstrating compliance, PHMSA finds a violation\nof 49 C.F.R. § 192.625(f)(1)(2).\n15. Item 7 - 49 C.F.R. § 192.739(a)(3): The Notice alleged IGU did not complete the\nrequired inspection and testing at pressure regulators at Site 1 in the calendar year 2020. In its\nResponse, IGU contested the violation, maintained that it had conducted the required inspection,\nbut acknowledged it could not produce the records for the calendar year 2020. As IGU\nacknowledged it could not provide records demonstrating compliance, PHMSA finds a violation\nof 49 C.F.R. § 192.739(a)(3).\n16. Item 8 - 49 C.F.R. § 192.743(a): The Notice alleged IGU did not confirm the\ncapacity of overpressure protection blowdown pressure relief valve PRV-600 by in-place testing\nor by review and calculations as required. Respondent did not contest the allegation of violation\nas alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 192.743(a).\n17. Item 9 - 49 C.F.R. § 192.747(a): The Notice alleged IGU did not conduct any\ndistribution valve inspections in 2019. Respondent did not contest the allegation of violation as\nalleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 192.747(a).\n18. Item 11 - 49 C.F.R. § 192.1007(c): The Notice alleged IGU did not have a\nwritten procedure that described the integrity management risk ranking and evaluation process it\nwas utilizing. Respondent did not contest the allegation of violation as alleged in the Notice. As\nsuch, PHMSA finds a violation of 49 C.F.R. § 192.1007(c).\n2 IGU produced one written record\n\n\n\n19. Items 1, 3, 4, 6, 7, 8, 9, and 11, will be considered by PHMSA as prior offenses in\nany future PHMSA enforcement action taken against Respondent for the five (5)-year period\nfollowing the Effective Date of this Agreement.\nIII. Warning Items:\n20. Item 2 - 49 C.F.R. § 192.283(a): The Notice alleged that IGU did not qualify its\njoining procedures as required. Specifically, the Notice alleged that though IGU stated it\nqualified its joining procedures, it did not have a copy of the record demonstrating that testing\nand qualification of the procedures were completed by the manufacturer or IGU. In its\nResponse, IGU stated that it relies on the manufacturer’s literature and statements that the\nprocedures conform to the pipeline safety regulations. IGU also stated it will update its standard\noperating procedures and records to demonstrate compliance. This Item was brought as a\nwarning Item and does not constitute a finding of violation.\n21. Item 5 - 49 C.F.R. § 192.605(a): The Notice alleged that IGU failed to follow its\nprocedural manual for operations, maintenance, and emergencies in two instances. Specifically,\nthe Notice alleged that IGU failed to perform emergency response training as described in its\nprocedure SOP D-1105 and that IGU failed to verify its odorator/detex tools were correct\ncalibrated as required by procedure SOP D-2125. This Item was brought as a warning Item and\ndoes not constitute a finding of violation. Respondent accepted the warning as alleged in the\nNotice. Additionally, IGU stated in its Response that the issues raised in this Item have been\ncorrected.\n22. Item 10 - 49 C.F.R. § 192.756: The Notice alleged that IGU did not inspect and\nmaintain its joining equipment as required. This Item was brought as a warning Item and does\nnot constitute a finding of violation. Respondent accepted the warning as alleged in the Notice.\nAdditionally, IGU stated in its Response that the issues raised in this Item have been corrected.\n23. Item 12 - 49 C.F.R. § 192.1007(d): The Notice alleged that IGU did not\nimplement measures designed to reduce risks from failure of its gas distribution pipelines.\nSpecifically, the Notice alleged IGU personnel could not produce records or verify that the\npreventative and mitigative measures associated with ranked risks, as identified in IGU’s\ndistribution integrity management program, were being implemented. This Item was brought as\na warning Item and does not constitute a finding of violation. Respondent accepted the warning\nas alleged in the Notice.\n24. For Warning Items 2, 5, 10 and 12, if OPS finds a violation of these provisions in\na subsequent inspection, Respondent may be subject to future enforcement action.\nIV. Civil Penalty:\n25. Item 4: The Notice proposed assessing a civil penalty in the amount of $20,400\nfor Item 4. Respondent requested a reduction of the proposed civil penalty and PHMSA agrees\nto reduce the civil penalty to $16,700. The reduction is based on reconsideration of the nature of\nthe probable violation from an activity to a records violation after consideration of additional\ninformation provided by Respondent.\n\n\n\n26. Item 6: The Notice proposed assessing a civil penalty in the amount of $50,200\nfor Item 6. Respondent requested a reduction of the proposed civil penalty and PHMSA agrees\nto reduce the civil penalty to $46,500. The reduction is based on reconsideration of the nature of\nthe probable violation from an activity to a records violation after consideration of additional\ninformation provided by Respondent.\n27. Item 7: The Notice proposed assessing a civil penalty in the amount of $36,800\nfor Item 7. Respondent requested a reduction of the proposed civil penalty and PHMSA agrees\nto reduce the civil penalty to $31,600. The reduction is based on reconsideration of number of\ninstances the violation occurred from 3 instances to 1 after consideration of additional\ninformation provided by Respondent.\nV. Additional Small Business Civil Penalty Reduction\n28. PHMSA agrees to further reduce the civil penalty by $56,880 based on the\nspecific circumstances in this case in consideration of IGU’s small business classification.\n29. Respondent shall pay an adjusted civil penalty in the amount of $37,920, pursuant\nto the payment instructions at 49 C.F.R. § 190.227(a) within 60 days of the Effective Date.\nV. Compliance Order:\n30. The Notice proposed a compliance order with respect to Items 1, 3, 6, 8, 9 and 11\nin the Notice for violations of 49 C.F.R. § 192. During the course of negotiation, in\nconsideration of settlement, the Parties have agreed to additional terms. Under 49 U.S.C.\n§ 60118(a), each person who engages in the transportation of gas or who owns or operates a\npipeline facility is required to comply with the applicable safety standards established under\nchapter 601. The Director has indicated that Respondent has taken actions to address the cited\nviolations for Items 1, 3, 8, 9, and 11. Accordingly, I find that compliance has been achieved\nwith respect to these violations. Therefore, the compliance terms proposed in the Notice for\nItems 1, 3, 8, 9, and 11 are not included in this Order.\n31. Item 6: The Notice proposed certain compliance order actions to address the non-\ncompliance alleged in the Notice. Respondent did not contest the Proposed Compliance Order.\nAs such, Respondent agrees to perform the following corrective measures:\nIGU must complete sampling in the North Pole distribution system with properly\ncalibrated odorant sampling equipment. IGU must provide calibration and sampling records to the\nDirector within 180 days of the Effective Date.\n32. Distribution Integrity Management Plan (DIMP) Improvements: IGU must\nsubmit for review and approval a plan to the Director for improving safety and compliance efforts\nwithin its DIMP including the projected costs associated with such improvements.\nWithin 60 days of the Effective Date, IGU must submit its plan for improving its DIMP\nfor the Director for approval.\n\n\n\nFor a period of one year, IGU must submit bi-monthly reports to the Director,\ndemonstrating how the approved plan referenced in paragraph 32 is being implemented, and\ndocumenting the costs incurred. The first report is due to the Director sixty days after the plan’s\napproval date\nVI. Enforcement:\n33. This Agreement is subject to all enforcement authorities available to PHMSA\nunder 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190, including administrative civil penalties\nunder 49 U.S.C. § 60122, of up to $225,134 per violation for each day the violation continues and\nreferral of the case to the Attorney General for judicial enforcement, if PHMSA determines that\nRespondent is not complying with the terms of this Agreement in accordance with the\ndeterminations made by the Director, or in accordance with decisions of the Associate\nAdministrator if resolved pursuant to the Dispute Resolution process herein. The maximum civil\npenalty amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223. All work plans and\nassociated schedules set forth or referenced in Section V are automatically incorporated into this\nAgreement and are enforceable in the same manner.\nVII. Review and Approval Process:\n34. With respect to any submission under Section V (Compliance Order) of this\nAgreement that requires the approval of the Director, the Director may: (a) approve, in whole or\nin part, the submission; (b) approve the submission on specified, reasonable conditions; (c)\ndisapprove, in whole or in part, the submission; or (d) any combination of the foregoing. If the\nDirector approves, approves in part, or approves with conditions, Respondent will take all\nactions as approved by the Director, subject to Respondent’s right to invoke the dispute\nresolution procedures with respect to any conditions the Director identifies. If the Director\ndisapproves all or any portion of the submission, the Director will provide Respondent a written\nnotice of the deficiencies. Respondent will correct all deficiencies within the time specified by\nthe Director and resubmit it for approval.\nVIII. Dispute Resolution:\n35. The Director and Respondent will informally attempt to resolve any disputes\narising under this Agreement, including any decision of the Director under the terms of Section\nVII. Compliance Order. If Respondent and the Director are unable to informally resolve the\ndispute within 15 calendar days after the dispute is first raised, in writing, to the Director,\nRespondent may submit a written request for a determination resolving the dispute from the\nAssociate Administrator for Pipeline Safety, PHMSA. Such request must be made in writing and\nprovided to the Director, counsel for the Western Region, and to the Associate Administrator for\nPipeline Safety, no later than 10 calendar days from the 15-day deadline for informal resolution\nreferenced in this paragraph. Along with its request, Respondent must provide the Associate\nAdministrator with all information Respondent believes is relevant to the dispute. Decisions of\nthe Associate Administrator under this paragraph will constitute final agency action. The\nexistence of a dispute and PHMSA’s consideration of matters placed in dispute will not excuse,\ntoll, or suspend any term or timeframe for completion of any work to be performed under this\nAgreement during the pendency of the dispute resolution process.\n\n\n\nIX. Effective Date:\n36. The term “Effective Date,” as used herein, is the date on which the Consent Order\nis issued by the Associate Administrator, PHMSA, incorporating the terms of this Agreement.\nX. Recordkeeping and Information Disclosure:\n37. Unless otherwise required in this Agreement, Respondent agrees to maintain\nrecords demonstrating compliance with all requirements of this Agreement for a period of at\nleast five (5) years following completion of all work to be performed. For any reports, plans, or\nother deliverables required to be submitted to PHMSA pursuant to this Agreement, Respondent\nmay assert a claim of business confidentiality or other protections applicable to the release of\ninformation by PHMSA, covering part or all of the information required to be submitted to\nPHMSA pursuant to this Agreement in accordance with 49 C.F.R. Part 7. Respondent must\nmark the claim of confidentiality in writing on each page and include a statement specifying the\ngrounds for each claim of confidentially. PHMSA determines release of any information\nsubmitted pursuant to this Agreement in accordance with 49 C.F.R. Part 7, the Freedom of\nInformation Act, 5 U.S.C. § 552, DOT and PHMSA policies, and other applicable regulations\nand Executive Orders.\nXI. Modification:\n38. The terms of this Agreement may be modified by mutual agreement of the Parties.\nSuch modifications must be in writing and signed by both parties.\nXII. Termination:\n39. This Agreement will remain in effect until the Compliance Order in Section V is\nsatisfied, as determined by the Director. The Agreement shall not terminate until the Director\nconfirms, in writing, that the Agreement is terminated in accordance with this paragraph.\nNothing in this Agreement prevents Respondent from completing any of the obligations earlier\nthan the deadlines provided for in this Agreement.\nXII. Ratification:\n40. The Parties’ undersigned representatives certify that they are fully authorized to\nenter into the terms and conditions of this Agreement and to execute and legally bind such party\nto this document.\n41. The Parties hereby agree to all findings, conditions, and terms of this Agreement.\n[Signature Lines on Following Page]\n\n\n\nFor IGU:\n___________________________________\n________________________\nDate\nFor PHMSA:\n________________________________________\nDirector, Western Region, Office of Pipeline Safety\n________________________\nDate\n\n52023009NOPV_Closure Letter_09082025_(21-217219)_txt.pdf\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\nVIA ELECTRONIC MAIL TO: esudduth@interiorgas.com\n12300 W. Dakota Ave., Suite 340\nLakewood, CO 80228\nSeptember 8, 2025\nMs. Elena Sudduth\nGeneral Manager\nInterior Gas Utility\n2025 Phillips Field Road\nFairbanks AK, 99709\nCPF 5-2023-009-NOPV\nClosure Letter\nDear Ms. Sudduth:\nOn October 24, 2023, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued a Consent Order incorporating the terms of the Consent Agreement between PHMSA and\nthe Interior Gas Utility (IGU) in the above-referenced case. This Order included a Compliance\nOrder requirement for IGU to take certain corrective actions.\nPer the terms of the Consent Agreement, the Consent Agreement would terminate once the\nCompliance Order described in Section V of the Consent Agreement was satisfied, as determined\nby the Director, Western Region, PHMSA. On August 18, 2025, IGU submitted to PHMSA the\nremainder of the documentation demonstrating the identified deficiencies had been remediated,\nsatisfying the Compliance Order.\nAccordingly, the Consent Agreement is terminated, and this case is now closed. Thank you for\nyour cooperation in this matter.\n\n\n\nSincerely,\nDustin Hubbard\nDirector, Western Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 H. Keogh (#21-217219)\nGeorge Deal, Director of Operations, Interior Gas Utility - sdeal@interiorgas.com","truncated":false,"body_characters":34430}