{"operation":"document","citation":"CPF 52023038NOA","title":"NORTH SLOPE BOROUGH ENERGY MANAGEMENT — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-11-02","effective_on":null,"summary":"CLOSED notice of amendment citing 192.383(e)(1), 192.513(c), 192.59(a)(1), 192.605(b)(1), 192.605(b)(2), 192.615(a)(2), 192.617, 192.625(f), 192.627, 192.723(b)(1), 192.756.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023038noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023038noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023038noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52023038NOA","body":"Notice of Amendment involving NORTH SLOPE BOROUGH ENERGY MANAGEMENT. PHMSA's enforcement data identifies the cited regulations as 192.383(e)(1),  192.513(c),  192.59(a)(1),  192.605(b)(1),  192.605(b)(2),  192.615(a)(2),  192.617,  192.625(f),  192.627,  192.723(b)(1),  192.756. The case was opened on 2023-11-02 and is reported as closed as of 2024-10-01. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52023038NOA_Closure Letter_10012024_(22-254201).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023038NOA/52023038NOA_Closure%20Letter_10012024_(22-254201).pdf\n\n52023038NOA_Closure Letter_10012024_(22-254201)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023038NOA/52023038NOA_Closure%20Letter_10012024_(22-254201)_text.pdf\n\n52023038NOA_Notice of Amendment_11022023_(22-254201).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023038NOA/52023038NOA_Notice%20of%20Amendment_11022023_(22-254201).pdf\n\n52023038NOA_Notice of Amendment_11022023_(22-254201)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023038NOA/52023038NOA_Notice%20of%20Amendment_11022023_(22-254201)_text.pdf\n\n52023038NOA_Operator Response to Notice_11302023_(22-254201).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023038NOA/52023038NOA_Operator%20Response%20to%20Notice_11302023_(22-254201).pdf\n\n52023038NOA_Notice of Amendment_11022023_(22-254201)_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: Josiah.patkotak@north-slope.org\nNovember 2, 2023\nThe Honorable Josiah Patkotak\nMayor of the North Slope Borough\nNorth Slope Borough Energy Management\nP.O. Box 69\nUtqiagvik, AK 99723\nCPF 5-2023-038-NOA\nDear Mayor Patkotak:\nFrom October 17 through October 20, 2022, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant, to Chapter 601 of 49 United States Code,\ninspected the North Slope Borough Energy Management’s (NSB), Nuiqsut natural gas\ndistribution system in Nuiqsut, Alaska.\nBased on the inspection, PHMSA has identified the apparent inadequacies in NSB’s plans or\nprocedures, as described below:\n1. § 192.59 Plastic pipe.\n(a) New plastic pipe is qualified for use under this part if:\n(1) It is manufactured in accordance with a listed specification.\nNSB’s procedures were inadequate. Specifically, NSB’s Operations and Maintenance (O&M)\nmanual, Section P-192.281: Joining of Plastic Pipe, page 140 of 525, included a section titled\n\"Caulked bell and Spigot Joints (192.753)\". Caulked bell and spigot joints are cast iron metal\nequipment, yet were included in a section pertaining only to plastic piping.\n\n\n\nNSB must amend its procedures to be more clear when referring to material type requirements\nregarding operations, maintenance, and repair of pipe.\n2. § 192.383 Excess flow valve installation.\n(a) . . . .\n(e) Operator notification of customers concerning EFV installation. Operators must\nnotify customers of their right to request an EFV in the following manner:\n(1) Except as specified in paragraphs in paragraphs (c) and (e)(5) of this section,\neach operator must provide written or electronic notification to customers of their\nright to request the installation of an EFV. Electronic notification can include\nemails, Web site postings, and e-billing notices.\nNSB’s procedures were inadequate because they did not require notification to current customers\nthat they had the right to request to have an excess flow valve (EFV) installed. Specifically,\nduring the inspection, PHMSA observed that while no new service lines had been installed\nwithin the past 5 years, according to the annual reports, NSB’s informational mail-outs did not\ninform current customers of their right to request the installation of an EFV. Upon further\ninquiry, NSB could not produce records that it had notified customers of their right to request an\nEFV.\nNSB must amend their procedures to inform current customers of their right to request\ninstallation of an EFV.\n3. § 192.513 Test requirements for plastic pipelines.\n(a) . . . .\n(c) The test pressure must be at least 150% of the maximum operating pressure or\n50 psi (345 kPa) gauge, whichever is greater. However, the maximum test pressure\nmay not be more than 2.5 times the pressure determined under § 192.121 at a\ntemperature not less than the pipe temperature during the test.\nNSB’s procedures were inadequate pertaining to pressure test requirements for plastic pipe.\nSpecifically, O&M manual Page 242 of 525, Pressure Testing Plastic Pipe, contained a note\nwithin the Procedure Steps that stated testing the pipe at 3 times the maximum allowable\noperating pressure (MAOP) was acceptable1. The pipeline safety regulations limits the maximum\ntest pressure to 2.5 times the MAOP.\nNSB must update its O&M manual to correct the maximum allowable test pressure for plastic\npipelines.\n1 § 192.513(c) was amended effective date January 22, 2019. See 83 FR 58719.\n\n\n\n4. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(b) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following, if applicable, to provide\nsafety during maintenance and operations.\n(1) Operating, maintaining, and repairing the pipeline in accordance with each of\nthe requirements of this subpart and subpart M of this part.\nNSB’s procedures were inadequate pertaining to pressure safety valves (PSV) and ruptured\ndisks. Specifically, a review of NSB’s O&M manual, page 454 of 525, Relief Valves, did not\naccurately reflect the practices utilized by the operator. The O&M manual directed personnel on\nremoval, disassembly, maintenance, testing, calibration, and reassembly of PSVs. However, a\nreview of NSB’s records demonstrated that all PSV maintenance, inspection, testing, and\ncalibration had been completed by a third party, off site.\nAdditionally, the O&M manual, page 455 of 525, Pressure Limiting Devices, described a process\nfor performing maintenance tasks that included verifying ratings of rupture disks. Rupture disks\nare not installed in the Nuiqsut distribution system, nor are they considered pressure limiting\ndevices.\nNSB must amend its procedures to accurately reflect the equipment installed in the system and\nthe practices utilized by the operator to conduct PSV maintenance, testing, and calibration.\n5. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(b) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following, if applicable, to provide\nsafety during maintenance and operations.\n(1) . . . .\n(2) Controlling corrosion in accordance with the operations and maintenance\nrequirements of subpart I of this part.\nNSB’s procedures were inadequate pertaining to monitoring internal corrosion. Specifically, the\nO&M manual, P-192.475: Internal Corrosion Control, page 214 requires the operator to,\n\"Periodically conduct testing to determine whether the gas transported is potentially corrosive.\"\nIt additionally states that, \"The North Slope Borough shall at intervals not exceeding 7½ months,\nbut at least twice each calendar year, examine coupons or other types of monitoring equipment to\ndetermine the effectiveness of the inhibitors or the extent of any corrosion.\"\nDuring inspection, PHMSA found that there were no coupons or other corrosion inhibitors\ninstalled within the system. Rather, the inspection found that in practice, NSB was monitoring\nthe concentration of corrosive elements in its gas by reviewing quarterly reports from Kuparuk\nLabs (Alpine transmission line) and assessing the concentrations of hydrogen sulfide and water.\nHowever, the O&M manual did not include thresholds for hydrogen sulfide, water, or other\n\n\n\npotentially corrosive elements, nor did it include any steps to minimize internal corrosion upon\ndetermination that the gas was corrosive.\nNSB must amend its O&M manual to reflect the current practices and steps it utilizes to conduct\ninternal corrosion control.\n6. § 192.615 Emergency plans.\n(a) Each operator shall establish written procedures to minimize the hazard\nresulting from a gas pipeline emergency. At a minimum, the procedures must\nprovide for the following:\n(1) . . . .\n(2) Establishing and maintaining adequate means of communication with the\nappropriate public safety answering point (i.e., 9-1-1 emergency call center), where\ndirect access to a 9-1-1 emergency call center is available from the location of the\npipeline, and fire, police, and other public officials. Operators may establish liaison\nwith the appropriate local emergency coordinating agencies, such as 9-1-1\nemergency call centers or county emergency managers, in lieu of communicating\nindividually with each fire, police, or other public entity. An operator must\ndetermine the responsibilities, resources, jurisdictional area(s), and emergency\ncontact telephone number(s) for both local and out-of-area calls of each Federal,\nState, and local government organization that may respond to a pipeline emergency,\nand inform such officials about the operator's ability to respond to a pipeline\nemergency and the means of communication during emergencies.\nNSB’s procedures were inadequate pertaining to emergency action response. NSB’s O&M\nmanual page 281 of 525, Respond to Event, states that \"Alpine/Nuiqsut Control Room will\ndeploy personnel, equipment, tools, and materials as appropriate to the scene.\" The Nuiqsut\ncontrol room was inaccurately described within NSB’s Pipeline Specific Operations and\nMaintenance Manual (PSOM). Per the PSOM, Section 8.3 Abnormal Conditions, page 32 of 94,\n“Abnormal operations beyond preset limits will result in a general Odorant Injection System\nalarm on the Local Computer Display (LCD) in the Control Room of the PRV Station and at\nthe Alpine Operator’s Station. This Nuiqsut control room within the PRV Station was not an\nactual manned location and only contained a controller display panel. No Nuiqsut Control Room\nexists. Further NSB does not have authority over the ConocoPhillips Alpine control room and\ncannot speak to how ConocoPhillips Alpine will respond to a distribution emergency event.\nThe O&M manual did not describe a procedure requiring coordination with the local fire\ndepartment, police, or ConocoPhillip's Alpine control room.\nFurther, NSB’s PSOM, Section 12.1 Communication/Emergency, page 47 of 94, stated:\n“Nuiqsut operators communicate the following information by telephone. 1. Visually inspect\ndaily for unusual conditions, checking for dust/build-up. 2. Verify operating condition.” This\nlanguage does not adequately describe specific steps to take during an emergency. Additionally,\nthe procedural steps failed to describe whom the Nuiqsut operators are intended to be in\ncommunication with, and how they are to establish contact. NSB’s O&M manual did not contain\n\n\n\nany language mandating the establishment and maintenance of adequate means of\ncommunication with appropriate fire, police, and other public officials. Additionally, NSB did\nnot have a procedure and could not provide records establishing a liaison with police, fire, or\nother public officials.\nNSB must amend its emergency plans in accordance with § 192.615(a)(2).\n7. § 192.617 Investigation of failures and incidents.\n(a) Post-failure and incident procedures. Each operator must establish and follow\nprocedures for investigating and analyzing failures and incidents as defined in §\n191.3, including sending the failed pipe, component, or equipment for laboratory\ntesting or examination, where appropriate, for the purpose of determining the\ncauses and contributing factor(s) of the failure or incident and minimizing the\npossibility of a recurrence.\nNSB’s procedures were inadequate pertaining to accidents and failures. O&M manual, P-\n192.617: Investigating and Analyzing Incidents and Failures, Page 297 of 525, did not include\nprocedures for analyzing accidents and failures, including selection of samples of the failed pipe,\ncomponents, or equipment for laboratory examination. The operator failed to include instructions\nof when a laboratory analysis may be required, what samples will be obtained for laboratory\nanalysis, and how the information will be analyzed to minimize the possibility of recurrence.\nNSB must amend its procedures regarding investigation of failures and incidence in accordance\nwith § 192.617.\n8. § 192.625 Odorization of gas.\n(a) . . . .\n(f) To assure the proper concentration of odorant in accordance with this section,\neach operator must conduct periodic sampling of combustible gases using an\ninstrument capable of determining the percentage of gas in air at which the odor\nbecomes readily detectable. Operators of master meter systems may comply with\nthis requirement by--\nNSB’s PSOM procedure was inadequate pertaining to odorant testing. Specifically, NSB’s\nPSOM procedure repeatedly uses the word “sniff” which implies the use of a human sense of\nsmell in lieu of the use of the required instrumentation. Additionally, language in the procedure\nalludes to both utility operating personnel and customers performing monthly testing. PSOM,\nSection 8.4 Odorant Testing, Page 33/94 stated: “… the operator shall perform monthly and\ndocument \"sniff\" tests with an odor testing instrument and operator “sniff” test. Instrumented\n“sniff” testing should be performed and recorded monthly….1. Monthly \"sniff\" tests should be\nperformed by both utility operating personnel and customers. 2. When utility operating personnel\ndo any work on the gas distribution system, they should sniff the gas for odor.”\n\n\n\nAdditionally, NSB’s procedures are inconsistent regarding the frequency for testing odorant\nlevels. PSOM, Section 8.4 Odorant Testing, Page 33/94, stated: “…Instrumented ‘sniff’ testing\nshould be performed and recorded monthly.” While the O&M manual, Section P-192.625:\nOdorization of Natural Gas Pipelines, Page 331/525, stated: “Frequency…Perform ‘sniff’ test\nannually.”\nTherefore NSB’s procedures for odorant testing is inadequate. NSB must amend its procedures\nto be consistent and concise on who, how, and at what frequency it performs odorant testing.\n9. § 192.627 Tapping pipelines under pressure.\nEach tap made on a pipeline under pressure must be performed by a crew qualified\nto make hot taps.\nNSB’s procedures were inadequate pertaining to tapping pipelines under pressure. The O&M\nmanual, P-192.225: Pipeline Welding, in the Hot-Tapping of Plastic Piping section on page 129\nof 525, stated: “Hot tapping of plastic HDPE piping is done by following McElroys Procedure\nwhich begins on the following page.” The following page of the O&M manual did not include\nthe referenced “McElroys Procedure.” The O&M manual did not include a procedure to hot tap\nplastic pipelines.\nThe O&M manual, P-192.711: Pipeline Repair Procedures, in the Hot Tapping and Stoppling\nPressurized Pipeline section on page 416 of 525, did not specify what material the procedure\napplied to.\nNSB must amend its procedures to include specific procedures for hot tapping different forms of\npipe.\n10. § 192.723 Distribution systems: Leakage surveys.\n(a) . . . .\n(b) The type and scope of the leakage control program must be determined by the\nnature of the operations and the local conditions, but it must meet the following\nminimum requirements:\n(1) A leakage survey with leak detector equipment must be conducted in business\ndistricts, including tests of the atmosphere in gas, electric, telephone, sewer, and\nwater system manholes, at cracks in pavement and sidewalks, and at other locations\nproviding an opportunity for finding gas leaks, at intervals not exceeding 15\nmonths, but at least once each calendar year.\nNSB’s procedures were inadequate pertaining to determining and documenting business districts.\nThe operator failed to document the classification of business districts in the Nuiqsut distribution\nsystem. During the inspection, field personnel stated that the entire system was considered a\nbusiness district, but that was not documented in a record or procedure.\n\n\n\nNSB must amend its procedures to include a process for determining and documenting business\ndistricts.\n11. § 192.756 Joining plastic pipe by heat fusion; equipment maintenance and\ncalibration.\nEach operator must maintain equipment used in joining plastic pipe in accordance\nwith the manufacturer's recommended practices or with written procedures that\nhave been proven by test and experience to produce acceptable joints.\nNSB’s procedures were inadequate pertaining to heat fusion equipment maintenance.\nSpecifically, the operator failed to include a procedures in the O&M manual regarding the\nmaintenance of equipment for the joining of plastic pipe using heat fusion. Furthermore, the\noperator could not produce records that demonstrated continued maintenance on heat fusion\nequipment.\nTherefore NSB’s procedures were inadequate. NSB must amend its procedures to include\nmaintenance for plastic heat fusion equipment.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in\nEnforcement Proceedings.\nPlease refer to this document and note the response options. Be advised that all material you\nsubmit in response to this enforcement action is subject to being made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. 552(b), along with the complete original document, you must provide a second copy of\nthe document with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment\nunder 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under §190.211. If you do not respond within 30 days of\nreceipt of this Notice, this constitutes a waiver of your right to contest the allegations in this\nNotice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in\nthis Notice without further notice to you and to issue an Order Directing Amendment. If your\nplans or procedures are found inadequate, as alleged in this Notice, you may be ordered to amend\nyour plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not\ncontesting this Notice, we propose that you submit your amended procedures to my office within\n180 days of receipt of this Notice. This period may be extended by written request for good\ncause. Once the inadequacies identified herein have been addressed in your amended\nprocedures, this enforcement action will be closed.\n\n\n\nIt is requested (not mandated) that North Slope Borough Energy Management maintains\ndocumentation of the safety improvement costs associated with fulfilling this Notice of\nAmendment (preparation/revision of plans, procedures) and submit the total to Dustin Hubbard,\nDirector, Western Region, Pipeline and Hazardous Materials Safety Administration. In\ncorrespondence concerning this matter, please refer to CPF 5-2023-038-NOA, and for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nDustin Hubbard,\nDirector, Western Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings\ncc: PHP-60 Compliance Registry\nPHP-500 M. Yeager (#22-254201)\nRoy Martinez, Nuiqsut Gas Distribution Manager, NSBmanager@nucmail.com\nJoanne Simmonds, Assistant to the Mayor Joanne.simmonds@north-slope.org\nCharlie Risley, NSB Gas Field Manager Charlie.risley@north-slope.org\n\n52023038NOA_Closure Letter_10012024_(22-254201)_text.pdf\n\nVIA ELECTRONIC MAIL TO: Josiah.Patkotak@north-slope.org\nOctober 1, 2024\nThe Honorable Josiah Patkotak\nMayor of the North Slope Borough\nNorth Slope Borough Energy Management\nP.O. Box 69\nUtqiagvik, AK 99723\nCPF 5-2023-038-NOA\nClosure Letter\nDear Mayor Patkotak:\nFrom October 17 through October 20, 2022, a representative from the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to chapter 601 of 49 United States Code,\nconducted an on-site pipeline safety inspection of North Slope Borough Energy Management’s\n(NSB) procedures in Nuiqsut, Alaska. As a result of the inspection, NSB was issued a Notice of\nAmendment on November 2, 2023, which proposed amendment of your procedures.\nNSB submitted its amended procedures on June 7, 2024. My staff reviewed the amended\nprocedures, and it appears that the inadequacies outlined in this Notice of Amendment have been\ncorrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nDustin Hubbard,\nDirector, Western Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 M. Yeager (#22-254201)\nRoy Martinez, Nuiqsut Gas Distribution Manager - NSBmanager@nucmail.com\n\n\n\nJoanne Simmonds, Assistant to the Mayor- Joanne.Simmonds@north-slope.org\nCharlie Risley, NSB Gas Field Manager- Charlie.Risley@north-slope.org","truncated":false,"body_characters":21363}