{"operation":"document","citation":"CPF 52024005WL","title":"CALNRG OPERATING, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2024-05-21","effective_on":null,"summary":"CLOSED warning letter citing 192.9(d)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52024005wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52024005wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52024005wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52024005WL","body":"Warning Letter involving CALNRG OPERATING, LLC. PHMSA's enforcement data identifies the cited regulation as 192.9(d)(2). The case was opened on 2024-05-21 and is reported as closed as of 2024-05-21. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52024005WL_Warning Letter_05212024_(23-264044).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52024005WL/52024005WL_Warning%20Letter_05212024_(23-264044).pdf\n\n52024005WL_Warning Letter_05212024_(23-264044)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52024005WL/52024005WL_Warning%20Letter_05212024_(23-264044)_text.pdf\n\n52024005WL_Warning Letter_05212024_(23-264044)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: clif.simonson@calnrg.com\nMay 21, 2024\nMr. Clif Simonson\nPresident/COO\nCalifornia Natural Resources Group (CalNRG)\n1746-F South Victoria Avenue #245\nVentura, CA 93003\nCPF 5-2024-005-WL\nDear Mr. Simonson:\nFrom November 13 through 17, 2023, representatives of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.),\ninspected the CalNRG Type B Gas Gathering (GG) inspection system located in Ventura\nCounty, California.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected\nand the probable violation is:\n1. § 192.9 What requirements apply to gathering pipelines?\n(a) . . . .\n(d) Type B lines. An operator of a Type B regulated onshore gathering line must\ncomply with the following requirements:\n(1) . . . .\n(2) If the pipeline is metallic, control corrosion according to requirements of subpart\nI of this part applicable to transmission lines, except the requirements in §§\n\n\n\n192.461(f) through (i), 192.465(d) and (f), 192.473(c), 192.478, 192.485(c), and\n192.493;\nCalNRG failed to comply with all Type B gas-gathering metallic pipeline corrosion control\nrequirements pursuant to §192.9(d)(2).\nSpecifically, CalNRG failed to demonstrate adequate levels of cathodic protection (CP) as\nrequired by §192.463(a). CalNRG did not collect instant-off (IR free) measurement data while\nperforming 2022 CP Annual Surveys on PL-8396-2, PL-8402, PL-8403, PL-8444, and PL-8540.\nAdditionally, the November 6, 2023 CP Annual Survey results for PL-8444 did not meet the\n-0.85 V instant off (IR free) or any other Appendix D criteria.\nAccordingly, CalNRG failed to demonstrate that each cathodic protection system provided a\nlevel of cathodic protection that complies with one or more of the applicable criteria contained in\nAppendix D of Part 192 as required by § 192.9(d)(2) & § 192.463(a).\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$266,015 per violation per day the violation persists, up to a maximum of $2,660,135 for a\nrelated series of violations. For violation occurring on or after January 6, 2023 and before\nDecember 28, 2023, the maximum penalty may not exceed $257,664 per violation per day the\nviolation persists, up to a maximum of $2,576,627 for a related series of violations. For violation\noccurring on or after March 21, 2022 and before January 6, 2023, the maximum penalty may not\nexceed $239,142 per violation per day the violation persists, up to a maximum of $2,391,142 for\na related series of violations. For violation occurring on or after May 3, 2021 and before March\n21, 2022, the maximum penalty may not exceed $225,134 per violation per day the violation\npersists, up to a maximum of $2,251,334 for a related series of violations. For violation\noccurring on or after January 11, 2021 and before May 3, 2021, the maximum penalty may not\nexceed $222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for\na related series of violations. For violation occurring on or after July 31, 2019 and before January\n11, 2021, the maximum penalty may not exceed $218,647 per violation per day the violation\npersists, up to a maximum of $2,186,465 for a related series of violations. For violation\noccurring on or after November 27, 2018, and before July 31, 2019, the maximum penalty may\nnot exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679.\nWe have reviewed the circumstances and supporting documents involved in this case and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at this\ntime. We advise you to correct the item identified in this letter. Failure to do so will result in\nCalifornia Natural Resources Group (CalNRG) being subject to additional enforcement action.\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 5-2024-005-WL. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. § 552(b), along with the\ncomplete original document, you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe\nthe redacted information qualifies for confidential treatment under 5 U.S.C. § 552(b).\nSincerely,\nDustin Hubbard\nDirector, Western Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 M. Mulligan, M. Flaherty (#23-264044)\nMatt Pearson – CalNRG Facilities Manager, matt.pearson@calnrg.com\nSarah D’Avella – DOT Contractor, sarah@specterandcypress.com","truncated":false,"body_characters":5690}