# INTERIOR GAS UTILITY — Notice of Probable Violation

- **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:** Not available
- **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.
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- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-52023009nopv.md
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- **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.

Official case documents:

52023009NOPV_Closure Letter_09082025_(21-217219).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023009NOPV/52023009NOPV_Closure%20Letter_09082025_(21-217219).pdf

52023009NOPV_Closure Letter_09082025_(21-217219)_txt.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023009NOPV/52023009NOPV_Closure%20Letter_09082025_(21-217219)_txt.pdf

52023009NOPV_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

52023009NOPV_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

52023009NOPV_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

52023009NOPV_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

52023009NOPV_PCP PCO_03012023_(21-217219).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023009NOPV/52023009NOPV_PCP%20PCO_03012023_(21-217219).pdf

52023009NOPV_PCP PCO_03012023_(21-217219)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023009NOPV/52023009NOPV_PCP%20PCO_03012023_(21-217219)_text.pdf

52023009NOPV_PHC Hearing Scheduled_05232023_(21-217219).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023009NOPV/52023009NOPV_PHC%20Hearing%20Scheduled_05232023_(21-217219).pdf

52023009NOPV_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

52023009NOPV_Closure Letter_09082025_(21-217219).pdf

U.S. Department
of Transportation
Pipeline and Hazardous
Materials Safety
Administration
VIA ELECTRONIC MAIL TO: esudduth@interiorgas.com
12300 W. Dakota Ave., Suite 340
Lakewood, CO 80228
September 8, 2025
Ms. Elena Sudduth
General Manager
Interior Gas Utility
2025 Phillips Field Road
Fairbanks AK, 99709
CPF 5-2023-009-NOPV
Closure Letter
Dear Ms. Sudduth:
On October 24, 2023, the Pipeline and Hazardous Materials Safety Administration (PHMSA)
issued a Consent Order incorporating the terms of the Consent Agreement between PHMSA and
the Interior Gas Utility (IGU) in the above-referenced case. This Order included a Compliance
Order requirement for IGU to take certain corrective actions.
Per the terms of the Consent Agreement, the Consent Agreement would terminate once the
Compliance Order described in Section V of the Consent Agreement was satisfied, as determined
by the Director, Western Region, PHMSA. On August 18, 2025, IGU submitted to PHMSA the
remainder of the documentation demonstrating the identified deficiencies had been remediated,
satisfying the Compliance Order.
Accordingly, the Consent Agreement is terminated, and this case is now closed. Thank you for
your cooperation in this matter.



Sincerely,
Dustin Hubbard
Director, Western Region, Office of Pipeline Safety
Pipeline and Hazardous Materials Safety Administration
cc: PHP-60 Compliance Registry
PHP-500 H. Keogh (#21-217219)
George Deal, Director of Operations, Interior Gas Utility - sdeal@interiorgas.com

52023009NOPV_PHC Hearing Scheduled_05232023_(21-217219)_text.pdf

May 23, 2023
VIA ELECTRONIC MAIL TO: dwbritton@interiorgas.com and dustin.hubbard@dot.gov
Mr. Daniel Britton
General Manager
Interior Gas Utility
2525 Phillips Field Road
Fairbanks, AK 99709
Mr. Dustin Hubbard
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
12300 W. Dakota Avenue, Suite 110
Lakewood, CO 80228
Re: Notice of Hearing, Interior Gas Utility
CPF No. 5-2023-009-NOPV
Dear Mr. Britton and Mr. Hubbard:
In accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of
Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order issued by the Pipeline
and Hazardous Materials Safety Administration in the above-referenced case. The hearing will take
place on October 25, 2023, beginning at 8:30 a.m. Alaska Time.
The hearing will be held via videoconference. I will provide the videoconference information prior
to the hearing. At least 10 calendar days prior to the hearing (or by October 16, 2023), both parties
must submit and exchange any additional written materials they intend to present at the hearing.
Please include the name and email address of each attendee as well. This information should be
provided electronically. Materials not submitted by this date may be excluded.
If you have any questions, please do not hesitate to contact me.
Sincerely,
Larry White
Presiding Official



cc: Mr. Zane Wilson, Counsel, Alaska Law
zane@alaskalaw.com
Mr. Joseph Hainline, Counsel, Western Region, Office of Pipeline Safety,
joseph.hainline@dot.gov

52023009NOPV_Consent Agreement and Order_10242023_(21-217219)_text.pdf

October 24, 2023
VIA ELECTRONIC MAIL TO: mrockwell@interiorgas.com
Mark Rockwell
Director, Operations
Interior Gas Utility
2525 Phillips Field Road
Fairbanks, Alaska 99709
CPF No. 5-2023-009-NOPV
Dear Mr. Rockwell:
Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between
the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Interior Gas Utility,
which was executed on October 23, 2023. Service of the Consent Order and Consent Agreement
by electronic mail is deemed effective upon the date of transmission and acknowledgement of
receipt, or as otherwise 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
Enclosures: Consent Order and Consent Agreement
cc: Mr. Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA
Mr. Daniel Britton, General Manager, Interior Gas Utility, dwbritton@interiorgas.com
Ms. Elena Sudduth, Deputy General Manager, Interior Gas Utility,
esudduth@interiorgas.com
Mr. Zane Wilson, Outside Counsel for Interior Gas Utility, zane@alaskalaw.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 GAS UTILITY, ) CPF No. 5-2023-009-NOPV
)
)
)
Respondent. )
____________________________________)
CONSENT ORDER
By letter dated March 1, 2023, the Pipeline and Hazardous Materials Safety Administration
(PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Probable Violation, Proposed
Civil Penalty and Proposed Compliance Order (Notice) to Interior Gas Utility (IGU or
Respondent).
In response to the Notice, Respondent contested the underlying violations on Items 1, 3, 4, 6, and
7, and requested a hearing on Items 4, 6, and 7, contesting the underlying violations and the
proposed civil penalty. IGU also asked for the opportunity to meet informally with PHMSA to
discuss the contested Items in the Notice. Respondent and PHMSA (The Parties) subsequently
met to discuss the issues raised in the Response. As a result of those discussions, as explained in
more detail below, the Parties have agreed to a Consent Agreement by which PHMSA has
agreed to reduce the civil penalties to $37,920.
Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this
Consent Order. IGU is hereby ordered to comply with the terms of the Consent Agreement
pursuant to its terms. Pursuant to 49 U.S.C. § 60101, et seq., failure to comply with this Consent
Order may result in the assessment of civil penalties as set forth in 49 U.S.C. § 60122 and 49
C.F.R. § 190.223, or in referral to the Attorney General for appropriate relief in a district court of
the United States.
The terms and conditions of this Consent Order are effective upon service in accordance with
49 C.F.R. § 190.5.
October 24, 2023
______________________________ ______________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
INTERIOR GAS UTILITY, ) CPF No. 5-2023-009-NOPV
)
)
)
Respondent. )
____________________________________)
CONSENT AGREEMENT
From August 2 through 6, 2021, a representative of the Pipeline and Hazardous Materials Safety
Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49
United States Code (U.S.C.), conducted an on-site pipeline safety inspection of the facilities and
records of Interior Gas Utility’s (IGU or Respondent) distribution system Fairbanks, Alaska.
As a result of the inspection, the Director, Western Region, OPS (Director), issued to
Respondent, by letter dated March 1, 2023, a Notice of Probable Violation, Proposed
Compliance Order and Proposed Civil Penalty (Notice), which also included a warning pursuant
to 49 C.F.R. § 190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding
that IGU committed violations of 8 provisions of 49 C.F.R. § 192 (Items 1, 3, 4, 6, 7, 8, 9, and
11), and proposed ordering Respondent to take certain measures to correct the alleged violations
and a civil penalty of $107,400. The other probable violations (Items 2, 5, 10 and 12) were
brought as warnings, advising the operator to correct the probable violations or face potential
future enforcement action.
IGU responded to the Notice by letter dated March 30, 2023 (Response). The company
contested the underlying violations and the proposed civil penalty, arguing that as a small
business, IGU’s ability to conduct business would be adversely affected if required to pay the
full civil penalties.
PHMSA and Respondent (the Parties) subsequently met to discuss the issues raised in the
Response. As a result of those discussions and as explained in more detail below, PHMSA has
agreed to reduce the civil penalties to $37,920.
Having agreed that settlement of this proceeding will avoid further administrative proceedings or
litigation and will serve the public interest by promoting safety and protection of the
environment, pursuant to 49 U.S.C. § 60101, et seq. and 49 C.F.R. Part 190, and upon consent
and agreement, the Parties hereby agree as follows:



I. General Provisions
1. Respondent acknowledges that as the operator of the pipeline facilities subject to
the Notice, Respondent and its referenced pipeline facilities are subject to the jurisdiction of the
Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative
orders issued thereunder. For purposes of this Consent Agreement (Agreement), Respondent
acknowledges that it received proper notice of PHMSA’s action in this proceeding and that the
Notice states claims upon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq.,
and the regulations and orders issued thereunder.
2. After Respondent returns this signed Agreement to PHMSA, the Agency’s
representative will present it to the Associate Administrator for Pipeline Safety, recommending
that the Associate Administrator adopt the terms of this Agreement by issuing an administrative
order (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement
constitute an offer of settlement until accepted by the Associate Administrator. Once accepted,
the Associate Administrator will issue a Consent Order incorporating the terms of this Agreement.
3. Respondent consents to the issuance of the Consent Order, and hereby waives any
further procedural requirements with respect to its issuance. Respondent waives all rights to
contest the adequacy of notice, or the validity of the Consent Order or this Agreement, including
all rights to administrative or judicial hearings or appeals, except for the Dispute Resolution
provisions set forth herein. Respondent agrees to withdraw its request for an administrative
hearing regarding the Notice.
4. This Agreement shall apply to and be binding upon PHMSA and Respondent, its
officers, directors, and employees, and its successors, assigns, or other entities or persons
otherwise bound by law. Respondent agrees to provide a copy of this Agreement and any
incorporated work plans and schedules to all of Respondent’s officers, employees, and agents
whose duties might reasonably include compliance with this Agreement.
5. This Agreement constitutes the final, complete and exclusive agreement and
understanding between the Parties with respect to the settlement embodied in this Agreement.
The Parties acknowledge that there are no representations, agreements or understandings relating
to settlement other than those expressly contained in this Agreement, except that the terms of this
Agreement may be construed by reference to the Notice.
6. Nothing in this Agreement affects or relieves Respondent of its responsibility to
comply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101,
et seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters
PHMSA's right of access, entry, inspection, and information gathering or PHMSA's authority to
bring enforcement actions against Respondent pursuant to the Federal pipeline safety laws, the
regulations and orders issued thereunder, or any other provision of Federal or State law.
7. For all transfers of ownership or operating responsibility of Respondent’s pipeline
system referenced herein, Respondent will provide a copy of this Agreement to the prospective



transferee at least 30 days prior to such transfer. Respondent will provide written notice of the
transfer to the Director no later than 60 days after the transfer occurs.
8. This Agreement does not waive or modify any Federal, State, or local laws or
regulations that are applicable to Respondent’s pipeline systems. This Agreement is not a
permit, or a modification of any permit, under any Federal, State, or local laws or regulations.
Respondent remains responsible for achieving and maintaining compliance with all applicable
Federal, State, and local laws, regulations and permits.
9. This Agreement does not create rights in, or grant any cause of action to, any third
party not party to this Agreement. The U.S. Department of Transportation is not liable for any
injuries or damages to persons or property arising from acts or omissions of Respondent or its
officers, employees, or agents carrying out the work required by this Agreement. Respondent
agrees to hold harmless the U.S. Department of Transportation, its officers, employees, agents,
and representatives from any and all causes of action arising from any acts or omissions of
Respondent or its contractors in carrying out any work required by this Agreement.
10. Except as set forth herein, this Agreement does not constitute a finding of
violation of any other federal law or regulation and may not be used in any civil proceeding of
any kind as evidence or proof of any fact, fault or liability, or as evidence of a violation of any
law, rule, regulation, or requirement, except in a proceeding to enforce the provisions of this
Agreement or in future PHMSA enforcement actions.
II. Findings of Violation:
11. Item 1 - 49 C.F.R. § 192.16(b)(1): The Notice alleged IGU did not have a
customer notification process in place that satisfied the requirements of the pipeline safety
regulations. Specifically, the Notice alleged that IGU could not provide any documentation that
it had notified customers that it did not maintain their buried piping as required. Respondent
contested the violation, stating that it did not believe that the notification requirement was
necessary for the vast majority of its customers as the customers did not have any buried piping.
However, IGU stated that where it was appropriate, it took action as outlined in its Response.1
As such, PHMSA finds a violation of 49 C.F.R. § 192.16(b)(1).
12. Item 3 - 49 C.F.R. § 192.453: The Notice alleged IGU did not have any
personnel who were qualified to conduct atmospheric corrosion inspections. Specifically, the
Notice alleged that IGU stated that a course that was specific to buried pipe was adequate
training to conduct atmospheric corrosion inspections. In its Response, IGU contested the
violation and provided an explanation. IGU stated that it utilizes NACE certified inspectors when
conducting atmospheric corrosion inspections at distribution header sites. They also stated that
they trained IGU personnel in 2022 and 2023 on conducting atmospheric corrosion inspection at
other parts of their system. However, the inspection was conducted in 2021. IGU’s Response did
not refute the allegations in the Notice. As such, PHMSA finds a violation of 49 C.F.R. §
192.453.
1 See Response at 3.



13. Item 4 - 49 C.F.R. § 192.481(a): The Notice alleged IGU personnel did not
inspect and evaluate IGU’s aboveground piping for atmospheric corrosion at the intervals
required. Specifically, the Notice alleged that IGU’s records for the year of 2019 were
insufficient to demonstrate compliance as the records lacked necessary information including
whether an inspection occurred, the date of the inspection, who completed the inspection,
whether the inspector looked for corrosion, and the findings of the inspection. In its Response,
IGU contested the violation, asserting that due to the climate of Fairbanks and North Pole only
light surface oxides tend to form on the pipelines, but acknowledged that the inspections were
not well documented because that it conducts the inspections in conjunction with routine meter
inspections. IGU also stated it took immediate action to remediate the issue after receiving the
Notice. As IGU acknowledged it could not provide records demonstrating compliance, PHMSA
finds a violation of 49 C.F.R. § 19.481(a).
14. Item 6 - 49 C.F.R. § 192.625(f)(1)(2): The Notice alleged IGU did not conduct
periodic sampling to verify the proper concentration of odorant in the North Pole distribution
system. Specifically, the Notice alleged that at the time of the inspection, IGU could not
demonstrate that it had sampled odorant levels for the North Pole distribution system, which was
commissioned in January 2021. In its Response, IGU contested the violation and maintained that
it was confident it had maintained proper odorant concentrations as required. However, IGU also
stated in its Response that all the written records2could not be located, and provided a record
showing odorant checks first were done on the North Pole system on August 3, 2021. As IGU
acknowledged it could not provide records demonstrating compliance, PHMSA finds a violation
of 49 C.F.R. § 192.625(f)(1)(2).
15. Item 7 - 49 C.F.R. § 192.739(a)(3): The Notice alleged IGU did not complete the
required inspection and testing at pressure regulators at Site 1 in the calendar year 2020. In its
Response, IGU contested the violation, maintained that it had conducted the required inspection,
but acknowledged it could not produce the records for the calendar year 2020. As IGU
acknowledged it could not provide records demonstrating compliance, PHMSA finds a violation
of 49 C.F.R. § 192.739(a)(3).
16. Item 8 - 49 C.F.R. § 192.743(a): The Notice alleged IGU did not confirm the
capacity of overpressure protection blowdown pressure relief valve PRV-600 by in-place testing
or by review and calculations as required. Respondent did not contest the allegation of violation
as alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 192.743(a).
17. Item 9 - 49 C.F.R. § 192.747(a): The Notice alleged IGU did not conduct any
distribution valve inspections in 2019. Respondent did not contest the allegation of violation as
alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 192.747(a).
18. Item 11 - 49 C.F.R. § 192.1007(c): The Notice alleged IGU did not have a
written procedure that described the integrity management risk ranking and evaluation process it
was utilizing. Respondent did not contest the allegation of violation as alleged in the Notice. As
such, PHMSA finds a violation of 49 C.F.R. § 192.1007(c).
2 IGU produced one written record



19. Items 1, 3, 4, 6, 7, 8, 9, and 11, will be considered by PHMSA as prior offenses in
any future PHMSA enforcement action taken against Respondent for the five (5)-year period
following the Effective Date of this Agreement.
III. Warning Items:
20. Item 2 - 49 C.F.R. § 192.283(a): The Notice alleged that IGU did not qualify its
joining procedures as required. Specifically, the Notice alleged that though IGU stated it
qualified its joining procedures, it did not have a copy of the record demonstrating that testing
and qualification of the procedures were completed by the manufacturer or IGU. In its
Response, IGU stated that it relies on the manufacturer’s literature and statements that the
procedures conform to the pipeline safety regulations. IGU also stated it will update its standard
operating procedures and records to demonstrate compliance. This Item was brought as a
warning Item and does not constitute a finding of violation.
21. Item 5 - 49 C.F.R. § 192.605(a): The Notice alleged that IGU failed to follow its
procedural manual for operations, maintenance, and emergencies in two instances. Specifically,
the Notice alleged that IGU failed to perform emergency response training as described in its
procedure SOP D-1105 and that IGU failed to verify its odorator/detex tools were correct
calibrated as required by procedure SOP D-2125. This Item was brought as a warning Item and
does not constitute a finding of violation. Respondent accepted the warning as alleged in the
Notice. Additionally, IGU stated in its Response that the issues raised in this Item have been
corrected.
22. Item 10 - 49 C.F.R. § 192.756: The Notice alleged that IGU did not inspect and
maintain its joining equipment as required. This Item was brought as a warning Item and does
not constitute a finding of violation. Respondent accepted the warning as alleged in the Notice.
Additionally, IGU stated in its Response that the issues raised in this Item have been corrected.
23. Item 12 - 49 C.F.R. § 192.1007(d): The Notice alleged that IGU did not
implement measures designed to reduce risks from failure of its gas distribution pipelines.
Specifically, the Notice alleged IGU personnel could not produce records or verify that the
preventative and mitigative measures associated with ranked risks, as identified in IGU’s
distribution integrity management program, were being implemented. This Item was brought as
a warning Item and does not constitute a finding of violation. Respondent accepted the warning
as alleged in the Notice.
24. For Warning Items 2, 5, 10 and 12, if OPS finds a violation of these provisions in
a subsequent inspection, Respondent may be subject to future enforcement action.
IV. Civil Penalty:
25. Item 4: The Notice proposed assessing a civil penalty in the amount of $20,400
for Item 4. Respondent requested a reduction of the proposed civil penalty and PHMSA agrees
to reduce the civil penalty to $16,700. The reduction is based on reconsideration of the nature of
the probable violation from an activity to a records violation after consideration of additional
information provided by Respondent.



26. Item 6: The Notice proposed assessing a civil penalty in the amount of $50,200
for Item 6. Respondent requested a reduction of the proposed civil penalty and PHMSA agrees
to reduce the civil penalty to $46,500. The reduction is based on reconsideration of the nature of
the probable violation from an activity to a records violation after consideration of additional
information provided by Respondent.
27. Item 7: The Notice proposed assessing a civil penalty in the amount of $36,800
for Item 7. Respondent requested a reduction of the proposed civil penalty and PHMSA agrees
to reduce the civil penalty to $31,600. The reduction is based on reconsideration of number of
instances the violation occurred from 3 instances to 1 after consideration of additional
information provided by Respondent.
V. Additional Small Business Civil Penalty Reduction
28. PHMSA agrees to further reduce the civil penalty by $56,880 based on the
specific circumstances in this case in consideration of IGU’s small business classification.
29. Respondent shall pay an adjusted civil penalty in the amount of $37,920, pursuant
to the payment instructions at 49 C.F.R. § 190.227(a) within 60 days of the Effective Date.
V. Compliance Order:
30. The Notice proposed a compliance order with respect to Items 1, 3, 6, 8, 9 and 11
in the Notice for violations of 49 C.F.R. § 192. During the course of negotiation, in
consideration of settlement, the Parties have agreed to additional terms. Under 49 U.S.C.
§ 60118(a), each person who engages in the transportation of gas or who owns or operates a
pipeline facility is required to comply with the applicable safety standards established under
chapter 601. The Director has indicated that Respondent has taken actions to address the cited
violations for Items 1, 3, 8, 9, and 11. Accordingly, I find that compliance has been achieved
with respect to these violations. Therefore, the compliance terms proposed in the Notice for
Items 1, 3, 8, 9, and 11 are not included in this Order.
31. Item 6: The Notice proposed certain compliance order actions to address the non-
compliance alleged in the Notice. Respondent did not contest the Proposed Compliance Order.
As such, Respondent agrees to perform the following corrective measures:
IGU must complete sampling in the North Pole distribution system with properly
calibrated odorant sampling equipment. IGU must provide calibration and sampling records to the
Director within 180 days of the Effective Date.
32. Distribution Integrity Management Plan (DIMP) Improvements: IGU must
submit for review and approval a plan to the Director for improving safety and compliance efforts
within its DIMP including the projected costs associated with such improvements.
Within 60 days of the Effective Date, IGU must submit its plan for improving its DIMP
for the Director for approval.



For a period of one year, IGU must submit bi-monthly reports to the Director,
demonstrating how the approved plan referenced in paragraph 32 is being implemented, and
documenting the costs incurred. The first report is due to the Director sixty days after the plan’s
approval date
VI. Enforcement:
33. This Agreement is subject to all enforcement authorities available to PHMSA
under 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190, including administrative civil penalties
under 49 U.S.C. § 60122, of up to $225,134 per violation for each day the violation continues and
referral of the case to the Attorney General for judicial enforcement, if PHMSA determines that
Respondent is not complying with the terms of this Agreement in accordance with the
determinations made by the Director, or in accordance with decisions of the Associate
Administrator if resolved pursuant to the Dispute Resolution process herein. The maximum civil
penalty amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223. All work plans and
associated schedules set forth or referenced in Section V are automatically incorporated into this
Agreement and are enforceable in the same manner.
VII. Review and Approval Process:
34. With respect to any submission under Section V (Compliance Order) of this
Agreement that requires the approval of the Director, the Director may: (a) approve, in whole or
in part, the submission; (b) approve the submission on specified, reasonable conditions; (c)
disapprove, in whole or in part, the submission; or (d) any combination of the foregoing. If the
Director approves, approves in part, or approves with conditions, Respondent will take all
actions as approved by the Director, subject to Respondent’s right to invoke the dispute
resolution procedures with respect to any conditions the Director identifies. If the Director
disapproves all or any portion of the submission, the Director will provide Respondent a written
notice of the deficiencies. Respondent will correct all deficiencies within the time specified by
the Director and resubmit it for approval.
VIII. Dispute Resolution:
35. The Director and Respondent will informally attempt to resolve any disputes
arising under this Agreement, including any decision of the Director under the terms of Section
VII. Compliance Order. If Respondent and the Director are unable to informally resolve the
dispute within 15 calendar days after the dispute is first raised, in writing, to the Director,
Respondent may submit a written request for a determination resolving the dispute from the
Associate Administrator for Pipeline Safety, PHMSA. Such request must be made in writing and
provided to the Director, counsel for the Western Region, and to the Associate Administrator for
Pipeline Safety, no later than 10 calendar days from the 15-day deadline for informal resolution
referenced in this paragraph. Along with its request, Respondent must provide the Associate
Administrator with all information Respondent believes is relevant to the dispute. Decisions of
the Associate Administrator under this paragraph will constitute final agency action. The
existence of a dispute and PHMSA’s consideration of matters placed in dispute will not excuse,
toll, or suspend any term or timeframe for completion of any work to be performed under this
Agreement during the pendency of the dispute resolution process.



IX. Effective Date:
36. The term “Effective Date,” as used herein, is the date on which the Consent Order
is issued by the Associate Administrator, PHMSA, incorporating the terms of this Agreement.
X. Recordkeeping and Information Disclosure:
37. Unless otherwise required in this Agreement, Respondent agrees to maintain
records demonstrating compliance with all requirements of this Agreement for a period of at
least five (5) years following completion of all work to be performed. For any reports, plans, or
other deliverables required to be submitted to PHMSA pursuant to this Agreement, Respondent
may assert a claim of business confidentiality or other protections applicable to the release of
information by PHMSA, covering part or all of the information required to be submitted to
PHMSA pursuant to this Agreement in accordance with 49 C.F.R. Part 7. Respondent must
mark the claim of confidentiality in writing on each page and include a statement specifying the
grounds for each claim of confidentially. PHMSA determines release of any information
submitted pursuant to this Agreement in accordance with 49 C.F.R. Part 7, the Freedom of
Information Act, 5 U.S.C. § 552, DOT and PHMSA policies, and other applicable regulations
and Executive Orders.
XI. Modification:
38. The terms of this Agreement may be modified by mutual agreement of the Parties.
Such modifications must be in writing and signed by both parties.
XII. Termination:
39. This Agreement will remain in effect until the Compliance Order in Section V is
satisfied, as determined by the Director. The Agreement shall not terminate until the Director
confirms, in writing, that the Agreement is terminated in accordance with this paragraph.
Nothing in this Agreement prevents Respondent from completing any of the obligations earlier
than the deadlines provided for in this Agreement.
XII. Ratification:
40. The Parties’ undersigned representatives certify that they are fully authorized to
enter into the terms and conditions of this Agreement and to execute and legally bind such party
to this document.
41. The Parties hereby agree to all findings, conditions, and terms of this Agreement.
[Signature Lines on Following Page]



For IGU:
___________________________________
________________________
Date
For PHMSA:
________________________________________
Director, Western Region, Office of Pipeline Safety
________________________
Date

52023009NOPV_Closure Letter_09082025_(21-217219)_txt.pdf

U.S. Department
of Transportation
Pipeline and Hazardous
Materials Safety
Administration
VIA ELECTRONIC MAIL TO: esudduth@interiorgas.com
12300 W. Dakota Ave., Suite 340
Lakewood, CO 80228
September 8, 2025
Ms. Elena Sudduth
General Manager
Interior Gas Utility
2025 Phillips Field Road
Fairbanks AK, 99709
CPF 5-2023-009-NOPV
Closure Letter
Dear Ms. Sudduth:
On October 24, 2023, the Pipeline and Hazardous Materials Safety Administration (PHMSA)
issued a Consent Order incorporating the terms of the Consent Agreement between PHMSA and
the Interior Gas Utility (IGU) in the above-referenced case. This Order included a Compliance
Order requirement for IGU to take certain corrective actions.
Per the terms of the Consent Agreement, the Consent Agreement would terminate once the
Compliance Order described in Section V of the Consent Agreement was satisfied, as determined
by the Director, Western Region, PHMSA. On August 18, 2025, IGU submitted to PHMSA the
remainder of the documentation demonstrating the identified deficiencies had been remediated,
satisfying the Compliance Order.
Accordingly, the Consent Agreement is terminated, and this case is now closed. Thank you for
your cooperation in this matter.



Sincerely,
Dustin Hubbard
Director, Western Region, Office of Pipeline Safety
Pipeline and Hazardous Materials Safety Administration
cc: PHP-60 Compliance Registry
PHP-500 H. Keogh (#21-217219)
George Deal, Director of Operations, Interior Gas Utility - sdeal@interiorgas.com
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