WALDEN, TOWN OF — Notice of Probable Violation

party submissionOfficial PDF52024002NOPV_Operator Response to Notice and Request for Hearing_02272024_(22-258385).pdf#

case documentOfficial PDF52024002NOPV_PCP PCO_01292024_(22-258385)_text.pdf#

case documentOfficial PDF52024002NOPV_PCP PCO_01292024_22-258385.pdf#

52024002NOPV_PHC Hearing Canceled_09192024_(22-258385)_text.pdf, page 1Official PDFDate: September 19, 2024 From: Larry White To: File Re: Cancelation of Hearing, Town of Walden CPF No. 5-2024-002-NOPV On September 19, 2024, PHMSA issued a Consent Agreement and Order which resolved this case without any need for a hearing. Therefore, the previously scheduled hearing is automatically canceled.#

52024002NOPV_Closure Letter_06272025_(22-258385)_text.pdf, page 1Official PDFVIA ELECTRONIC MAIL TO: timo.townofwalden@gmail.com June 27, 2025 Tim Oberbroeckling Mayor Town of Walden 513 Harrison St. PO Box 489 Walden CO, 80480 CPF 5-2024-002-NOPV Closure Letter Dear Mayor Oberbroeckling: On September 19, 2024, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a Consent Order incorporating the terms of the Consent Agreement between PHMSA and the Town of Walden in the above-referenced case. This Order included a Compliance Order requirement for the Town of Walden to take certain corrective actions on its pipeline. Per the terms of the Consent Agreement, the Consent Agreement would terminate once the Town of Walden addressed the deficiencies indicated by the Close Interval Survey (CIS), which was performed from July 8, 2024 to July 9, 2024. On June 17, 2025, Pinedale Natural Gas, the contractor managing the Town of Walden’s natural gas distribution system, submitted documentation to PHMSA demonstrating the deficiencies indicated by the CIS had been remediated. Accordingly, the Consent Agreement is terminated, and this case is now closed. Thank you for your cooperation in this matter.#

52024002NOPV_Closure Letter_06272025_(22-258385)_text.pdf, page 2Sincerely, Dustin Hubbard Director, Western Region, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration cc: PHP-60 Compliance Registry PHP-500 J. Luo (#22-258385) Steve Shute, Pipeline Operator Managing Town of Walden’s Gas Distribution System- Steve@pipeline.group Casey Hensley, COPUC Program Manager - Casey.Hensley@state.co.us#

52024002NOPV_Consent Agreement and Order_09192024_(22-258385)_text.pdf, page 1Official PDFSeptember 19, 2024 VIA ELECTRONIC MAIL TO: timo.townofwalden@gmail.com Tim Oberbroeckling Mayor, Town of Walden 513 Harrison Street PO Box 489 Walden, Colorado 80480 Re: CPF No. 5-2024-002-NOPV Dear Mayor Oberbroeckling: Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Town of Walden, which was executed on September 11, 2024. Service of the Consent Order and Consent Agreement by electronic mail is deemed effective upon the date of transmission and acknowledgment 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 Agreement and Consent Order Cc: Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA Casey Hensley, Program Manager, Colorado Public Utilities Commission, Casey.Hensley@state.co.us CONFIRMATION OF RECEIPT REQUESTED#

52024002NOPV_Consent Agreement and Order_09192024_(22-258385)_text.pdf, page 2U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ In the Matter of ) Town of Walden, Colorado, ) CPF No. 5-2024-002-NOPV ) ) ) Respondent. ) ____________________________________) CONSENT ORDER By letter dated January 29, 2024, the Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety (PHMSA), issued a Notice of Probable Violation, Proposed Civil Penalty and Proposed Compliance Order (Notice) to Town of Walden, Colorado (Respondent). In response to the Notice, Respondent requested a hearing on Items 1, 2, 3, 4, and 5, contesting the underlying violations, the proposed civil penalties and the proposed compliance order as alleged within the Notice. Respondent also asked for an opportunity to meet informally with PHMSA to discuss the 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 makes findings of violation for Items 1, 3, and 4, issues a warning for Items 2 and 5, and assesses a civil penalty in the amount of $16,360, and Respondent will complete certain compliance actions. Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this Consent Order. Town of Walden 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 additional 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. September 19, 2024 ___________________________________ __________________________ Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety#

52024002NOPV_Consent Agreement and Order_09192024_(22-258385)_text.pdf, page 3U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ In the Matter of ) Town of Walden, Colorado, ) CPF No. 5-2024-002-NOPV ) ) ) Respondent. ) ____________________________________) CONSENT AGREEMENT From December 19, 2022, to December 20, 2022, representatives of the Colorado Public Utilities Commission (COPUC), pursuant to Chapter 601 of title 49 United States Code (U.S.C.), inspected the distribution integrity management program (DIMP) for Lines 1, 2 and 3 on the Town of Walden Gas Utility’s (Town of Walden or Respondent) natural gas distribution system managed by its contractor Pinedale Natural Gas in Englewood, Colorado. The inspection was prompted by an incident that released approximately 6.12 million cubic feet of natural gas into the atmosphere from August 31, 2022, to September 2, 2022. This incident involved the three pipelines inspected: Line 1, a 2-inch coated steel line installed in 1958, Line 2, a 3-inch coated steel line that runs parallel to Line 1 installed in 1979, and Line 3, a 2-inch coated steel line that was previously unknown to the Town of Walden prior to the incident. As a result of this inspection, the Director, Western Region, OPS (Director), issued to Respondent, by letter dated January 29, 2024, a Notice of Probable Violation, Proposed Civil Penalty and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Respondent had violated five provisions of 49 C.F.R. Part 192, proposed ordering Respondent to take certain measures to correct the alleged violations, and to pay a civil penalty in the amount of $81,800. Respondent responded to the Notice by letter dated February 27, 2024 (Response). Respondent contested the allegations of violation, provided additional information in response to the Notice, and requested a hearing and an informal conference. In addition to contesting the violations and the proposed civil penalty, the Town of Walden also argued that the civil penalty should be reduced on the basis that the Town is a small business, and the Town’s ability to continue in business would be significantly affected if it had to pay the proposed penalties in full. 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, the Parties have agreed to a Consent Agreement by which PHMSA makes findings of violation for Items 1, 3, and 4 and#

52024002NOPV_Consent Agreement and Order_09192024_(22-258385)_text.pdf, page 4reduces Item 2 and 5 to a warning. Respondent will pay a reduced civil penalty in the amount of $16,360. 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 people, property, and 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 natural gas 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, reviews, 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#

52024002NOPV_Consent Agreement and Order_09192024_(22-258385)_text.pdf, page 5right 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. 11. Respondent agrees for purposes of the Agreement to accept the findings of violation and to comply with the terms of this Agreement. II. Findings of Violation 12. Item 1- 49 C.F.R. § 191.5(a): The Notice alleged Respondent did not give immediate notice of the August 31, 2022, incident to the National Response Center (NRC), as required by 49 C.F.R. § 191.5(a). Specifically, Respondent did not report the incident until October 25, 2022. Respondent does not contest the violation as alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 191.5(a). 13. Item 3- 49 C.F.R. § 192.605(a): The Notice alleged Respondent failed to follow its written procedures for conducting operations and maintenance activities. Specifically, Respondent failed to follow O&M Manual Section 400.8 Inspecting Uncovered Pipeline and Section 650.3 Abandonment of Mains and Services as further described in the Notice. Respondent does not contest the violation as alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 192.605(a).#

52024002NOPV_Consent Agreement and Order_09192024_(22-258385)_text.pdf, page 614. Item 4- 49 C.F.R. § 192.617(a): The Notice alleged Respondent failed to follow its written procedures for investigating and analyzing failures and incidents. Specifically, Respondent failed to follow Section 260 Investigation of Failures as further described in the Notice. Respondent does not contest the violation as alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 192.617(a). 15. Items 1, 3, and 4 will be considered by PHMSA as prior offenses in any future PHMSA enforcement action taken against Respondent. III. Warning Items 16. Item 2: 49 C.F.R. 191.9(a): The Notice alleged Respondent failed to submit DOT Form RSPA F7100 within 30 days of detection of a failure as required. Specifically, Respondent submitted the required form on November 3, 2022, approximately 64 days after the detection of an incident. In light of additional information provided to PHMSA during the course of the informal consultation, PHMSA agrees to withdraw this allegation of violation and instead issue a warning for this Item. 17. Item 5: 49 C.F.R. 192.805(b): The Notice alleged Respondent failed to confirm through evaluation that individuals performing covered tasks were qualified. In light of additional information provided to PHMSA during the course of the informal consultation, PHMSA agrees to withdraw this allegation of violation and instead issue a warning for this Item. 18. For Warning Items 2 and 5, if OPS finds a violation of these provisions in a subsequent inspection, Respondent may be subject to future enforcement action. IV. Civil Penalties 19. Item 1: The Notice proposed assessing a civil penalty in the amount of $40,900 for Item 1. Respondent requested a reduction of the proposed civil penalty on the basis of its small business classification. After reviewing the information provided related to that request, PHMSA agrees to reduce the civil penalty to $16,360 in consideration of Town of Walden being a small business. 20. Item 2: The Notice proposed assessing a civil penalty in the amount of $40,900 for Item 2. Based on information provided by Respondent, PHMSA has agreed to withdraw the allegation of violation for Item 2 and instead has issued a warning for this Item. Accordingly, PHMSA withdraws the proposed civil penalty for this Item. 21. Respondent shall pay an adjusted civil penalty in the amount of $16,360, pursuant to the payment instructions at 49 C.F.R. § 190.227(a) within 60 days of the Effective Date. V. Compliance Order 22. Item 3: The Notice proposed certain compliance order actions to address the noncompliance alleged in the Notice. Respondent provided documentation to PHMSA on#

52024002NOPV_Consent Agreement and Order_09192024_(22-258385)_text.pdf, page 7August 5, 2024, demonstrating it had satisfied proposed Compliance Item A, related to Item 3, by confirming the abandoned pipeline described in the Notice was purged prior to abandonment as required by its operations and maintenance procedures Section 650.3. The other proposed compliance Item in the Notice, Compliance Item D, was related to Item 5, has been withdrawn and re-issued as a warning per paragraph 16 and no compliance actions are required. 23. Item 4: The Notice proposed certain compliance order actions to address the noncompliance for this Item. Respondent contested the proposed Compliance Item B, related to Item 4, in the Notice. The Parties determined that a Closed Interval Survey (CIS) on Line 2 would satisfy PHMSA’s concerns regarding the safety of Item 4 to ensure compliance with the requirements set forth in 49 C.F.R. § 192.617(a) and § 192.465(f)(2). Respondent submitted documentation demonstrating that it conducted this CIS on August 5, 2024. Respondent agrees to correct any deficiencies indicated by the CIS to ensure compliance with the requirements set forth in 49 C.F.R. § 192.465(d) and will submit documentation to PHMSA and COPUC demonstrating compliance by August 5, 2025. VI. Enforcement 24. 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 $266,015 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 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 (Compliance Order) are automatically incorporated into this Agreement and are enforceable in the same manner. VII. Review and Approval Process 25. 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#

52024002NOPV_Consent Agreement and Order_09192024_(22-258385)_text.pdf, page 826. 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 V (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 27. 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 28. 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 29. 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 30. This Agreement will remain in effect until the Civil Penalty in Section IV is paid in full and 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#

52024002NOPV_Consent Agreement and Order_09192024_(22-258385)_text.pdf, page 9terminated 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. XIII. Ratification 31. 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. 32. The Parties hereby agree to all findings, conditions and terms of this Agreement. For Town of Walden: ___________________________________ ____________________ Tim Oberbroeckling, Mayor, Town of Walden Date For PHMSA: ___________________________________ ____________________ Dustin B. Hubbard, Director, Western Region, OPS Date#

52024002NOPV_PHC Hearing Scheduled_04122024_(22-258385)_text.pdf, page 1Official PDFApril 12, 2024 VIA ELECTRONIC MAIL TO: tjoberbroeckling@aol.com and dustin.hubbard@dot.gov Mr. Tim Oberbroeckling Mayor, Town of Walden 513 Harrison Street P.O. Box 489 Walden, CO 80480 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, Town of Walden CPF No. 5-2024-002-NOPV Dear Mr. Oberbroeckling 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 September 24th, 2024, beginning at 8:30 a.m. Mountain Time. The hearing will be held at the PHMSA Western Region office, 12300 W. Dakota Ave, Suite 110, Lakewood, CO 80228. Upon arrival at the building, attendees will be required to present photo identification to security personnel. A contact phone number for the day of the hearing is (720) 963- 3160. At least 10 calendar days prior to the hearing (or by September 16th, 2024), both parties must submit and exchange any additional written materials they intend to present at the hearing and the name and email address of each attendee. 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#

52024002NOPV_PHC Hearing Scheduled_04122024_(22-258385)_text.pdf, page 2cc: Mr. Steven Shute, Operations Manager for Walden, Pinedale Natural Gas steve@pipeline.group Mr. Todd Ellsworth, Inspector, Colorado Public Utility Commission, todd.ellsworth@state.co.us Ms. Alexandra Iorio, Counsel, Western Region, Office of Pipeline Safety, alexandra.iorio@dot.gov Ms. Kathleen Maitland, Counsel, Western Region, Office of Pipeline Safety, kathleen.maitland@dot.gov#