{"operation":"document","citation":"CPF 52024023NOPV","title":"SPIRE STORAGE WEST LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2024-08-23","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.465(a), 192.465(b)(1), 192.475(a), 192.477, 192.481(a), 192.619(a), 192.739(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52024023nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52024023nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52024023nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52024023NOPV","body":"Notice of Probable Violation involving SPIRE STORAGE WEST LLC. PHMSA's enforcement data identifies the cited regulations as 192.465(a),  192.465(b)(1),  192.475(a),  192.477,  192.481(a),  192.619(a),  192.739(a). The case was opened on 2024-08-23 and is reported as closed as of 2025-10-03. Proposed civil penalty: $87,200. Assessed civil penalty: $64,200. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52024023NOPV_Final Order_09262025_(23-264166).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52024023NOPV/52024023NOPV_Final%20Order_09262025_(23-264166).pdf\n\n52024023NOPV_Final Order_09262025_(23-264166)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52024023NOPV/52024023NOPV_Final%20Order_09262025_(23-264166)_text.pdf\n\n52024023NOPV_Operator Response to Notice_09272024_(23-264166).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52024023NOPV/52024023NOPV_Operator%20Response%20to%20Notice_09272024_(23-264166).pdf\n\n52024023NOPV_PCP PCO_08232024_(23-264166).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52024023NOPV/52024023NOPV_PCP%20PCO_08232024_(23-264166).pdf\n\n52024023NOPV_PCP PCO_08232024_(23-264166)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52024023NOPV/52024023NOPV_PCP%20PCO_08232024_(23-264166)_text.pdf\n\n52024023NOPV_Final Order_09262025_(23-264166)_text.pdf\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nSeptember 26, 2025\nVIA ELECTRONIC MAIL TO: scott.smith@spireenergy.com\nScott Smith\nPresident\nSpire Storage West LLC\n3773 Richmond Avenue, Suite 300\nHouston, Texas 77046\nRe: CPF No. 5-2024-023-NOPV\nDear Mr. Smith:\nEnclosed please find the Final Order issued in the above-referenced case. It withdraws one of\nthe allegations of violation, makes other findings of violation, and assesses a reduced civil\npenalty of $64,200. The penalty payment terms are set forth in the Final Order. This\nenforcement action closes automatically upon receipt of payment. Service of the Final Order by\ne-mail is effective upon the date of transmission and acknowledgement of receipt as provided\nunder 49 CFR § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nLinda Daugherty\nActing Associate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA\nRandy Wilson, Director, Pipeline and System Integrity, Spire Storage West LLC,\nrandy.wilson@spireenergy.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 )\nSpire Storage West LLC, ) CPF No. 5-2024-023-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom August 15 through 16, 2023, pursuant to 49 U.S.C. § 60117, representatives of the Pipeline\nand Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of the facilities and records of Spire Storage West\nLLC (Spire or Respondent) in Evanston, Wyoming. Spire operates the Ryckman Gas System,\nwhich includes about 18 miles of gas pipelines that connect the Clear Creek and Belle Butte\nunderground natural gas storage facilities.\nAs a result of the inspection, the Director, Western Region, OPS (Director), issued to\nRespondent, by letter dated August 23, 2024, a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice). In accordance with 49 CFR § 190.207, the\nNotice proposed finding that Spire had committed four violations of 49 CFR Part 192 and\nproposed assessing a civil penalty of $87,200 for the alleged violations. The Notice also\nincluded an additional three warning items pursuant to 49 CFR § 190.205, which warned\nRespondent to correct the probable violations or face possible future enforcement action.\nSpire responded to the Notice by letter dated September 27, 2024 (Response). Respondent\ncontested several of the allegations, offered additional information in response to the Notice, and\nrequested that the proposed civil penalty be reduced. Respondent did not request a hearing and\ntherefore has waived its right to one.\nFINDINGS OF VIOLATION\nThe Notice alleged that Respondent violated 49 CFR Part 192, as follows:\nItem 1: The Notice alleged that Respondent violated 49 CFR § 192.465(a), which states:\n\n\n\nCPF No. 5-2024-023-NOPV\nPage 2\n§ 192.465 External corrosion control: Monitoring and remediation.\n(a) Each pipeline that is under cathodic protection must be tested at least\nonce each calendar year, but with intervals not exceeding 15 months, to\ndetermine whether the cathodic protection meets the requirements of §\n192.463. However, if tests at those intervals are impractical for separately\nprotected short sections of mains or transmission lines, not in excess of 100\nfeet (30 meters), or separately protected service lines, these pipelines may\nbe surveyed on a sampling basis. At least 10 percent of these protected\nstructures, distributed over the entire system must be surveyed each\ncalendar year, with a different 10 percent checked each subsequent year, so\nthat the entire system is tested in each 10-year period.\nThe Notice alleged that Respondent violated 49 CFR § 192.465(a) by failing to test its cathodic\nprotection at least once each calendar year, but with intervals not to exceed 15 months, to\ndetermine whether the cathodic protection meets the requirements of 49 CFR § 192.463.\nSpecifically, the Notice alleged that while Spire provided historical records of the annual\ncathodic protection survey, the 2021 and 2022 records failed to include applied current readings\nor readings with a voltage drop.\nRespondent did not contest Item 1.\nAccordingly, I find that Respondent violated 49 CFR § 192.465(a) by failing to test its cathodic\nprotection at least once each calendar year, but with intervals not to exceed 15 months, to\ndetermine whether the cathodic protection meets the requirements of 49 CFR § 192.463.\nItem 2: The Notice alleged that Respondent violated 49 CFR § 192.465(b)(1), which states:\n§ 192.465 External corrosion control: Monitoring and remediation.\n(a) . . . .\n(b) Cathodic protection rectifiers and impressed current power sources\nmust be periodically inspected as follows:\n(1) Each cathodic protection rectifier or impressed current power source\nmust be inspected six times each calendar year, but with intervals not\nexceeding 2 ½ months between inspections, to ensure adequate amperage\nand voltage levels needed to provide cathodic protection are maintained.\nThis may be done either through remote measurement or through an onsite\ninspection of the rectifier.\nThe Notice alleged that Respondent violated 49 CFR § 192.465(b)(1) by failing to inspect each\ncathodic protection rectifier six times each calendar year, but with intervals not exceeding 2 ½\nmonths between inspections, to ensure adequate amperage and voltage levels needed to provide\ncathodic protection are maintained. Specifically, the Notice alleged that Spire exceeded the 2 ½\nmonth interval eight times from 2021 through 2023.\nRespondent did not contest Item 2.\n\n\n\nCPF No. 5-2024-023-NOPV\nPage 3\nAccordingly, I find that Respondent violated 49 CFR § 192.465(b)(1) by failing to inspect each\ncathodic protection rectifier six times each calendar year, but with intervals not exceeding 2 ½\nmonths between inspections, to ensure adequate amperage and voltage levels needed to provide\ncathodic protection are maintained.\nItem 3: The Notice alleged that Respondent violated 49 CFR § 192.475(a), which states:\n§ 192.475 Internal corrosion control: General.\n(a) Corrosive gas may not be transported by pipeline, unless the\ncorrosive effect of the gas on the pipeline has been investigated and steps\nhave been taken to minimize internal corrosion.\nThe Notice alleged that Respondent violated 49 CFR § 192.475(a) by failing to take steps to\nminimize internal corrosion when transporting corrosive gas by pipeline. Specifically, the\nNotice alleged that Spire failed to provide records indicating that it implemented its program to\nmitigate the corrosive effects of hydrogen sulfide on its pipelines.\nRespondent contested Item 3 and argued that it is implementing its program to mitigate the\ncorrosive effects of hydrogen sulfide on its pipelines. Spire stated that it continuously injects\ncorrosion inhibitors to keep hydrogen sulfide levels below 4 parts per million (ppm) and\nprovided associated records documenting purchase and use of the corrosion inhibitors. Spire\nalso stated that its SCADA system monitors hydrogen sulfide levels and will alarm “well below\n4 ppm.”\nSection 192.475(a) permits an operator to transport corrosive gas only if the operator investigates\nthe corrosive effects of gas on the pipeline and takes steps to “minimize internal corrosion.”\nSpire acknowledged that it transports corrosive gas by pipeline. As the Notice indicated, Spire\ninvestigated the effects of corrosive gas when it hired a contractor to develop a hydrogen sulfide\nremoval program. Spire then provided records that it took steps to “minimize internal corrosion”\nby following its hydrogen sulfide removal program, which requires continuous injection of\ncorrosion inhibitors and SCADA monitoring of hydrogen sulfide levels.\nBased upon the foregoing, I hereby order that Item 3 be withdrawn.\nItem 5: The Notice alleged that Respondent violated 49 CFR § 192.481(a), which states:\n§ 192.481 Atmospheric corrosion control: Monitoring.\n(a) Each operator must inspect and evaluate each pipeline or portion of\nthe pipeline that is exposed to the atmosphere for evidence of atmospheric\ncorrosion, as follows:\nPipeline type: (1) Onshore other\nthan a Service Line\nThen the frequency of inspection is:\nAt least once every 3 calendar years, but\nwith intervals not exceeding 39 months.\n\n\n\nCPF No. 5-2024-023-NOPV\nPage 4\n(2) Onshore\nService Line\nAt least once every 5 calendar years, but\nwith intervals not exceeding 63 months,\nexcept as provided in paragraph (d) of this\nsection.\n(3) Offshore At least once each calendar year, but with\nintervals not exceeding 15 months\nThe Notice alleged that Respondent violated 49 CFR § 192.481(a) by failing to conduct\natmospheric corrosion inspections at least once every 3 calendar years, but with intervals not\nexceeding 39 months. Specifically, the Notice alleged that Spire failed to provide atmospheric\ncorrosion inspection records for 2019, and the atmospheric corrosion inspection records for 2022\nfailed to include inspections of the aboveground pipes that connect the Belle Butte facility to the\nregulated injection/withdraw well flanges.\nRespondent contested Item 5, in part, and argued that its 2022 atmospheric corrosion inspection\nrecords included inspections of the aboveground pipes that connect the Belle Butte facility to the\nregulated injection/withdraw well flanges. Spire clarified that those pipelines are referred to the\n“Dance Floor” or “DF” locations in its 2022 atmospheric corrosion inspection records. Spire\nconceded that it was unable to locate the 2019 atmospheric corrosion inspection records.\nI find that Spire did not violate section 192.481(a) in 2022 after it clarified that the 2022\natmospheric corrosion inspection records included inspections of the aboveground pipes that\nconnect the Belle Butte facility to the regulated injection/withdraw well flanges. However, I find\nthat Spire violated section 192.481(a) in 2019, as it failed to provide the 2019 atmospheric\ncorrosion inspection records.\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 CFR\n§ 192.481(a) by failing to conduct atmospheric corrosion inspections at least once every 3\ncalendar years, but with intervals not exceeding 39 months.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty exceeding\n$200,000 per violation for each day of the violation, with a maximum administrative civil\npenalty exceeding $2,000,000 for any related series of violations.1\nIn determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 CFR § 190.225, I\n1 These amounts are adjusted annually for inflation. See 49 CFR § 190.223 for adjusted amounts.\n\n\n\nCPF No. 5-2024-023-NOPV\nPage 5\nmust consider the following criteria: the nature, circumstances, and gravity of the violation,\nincluding adverse impact on the environment; the degree of Respondent’s culpability; the history\nof Respondent’s prior offenses; any effect that the penalty may have on its ability to continue\ndoing business; the good faith of Respondent in attempting to comply with the pipeline safety\nregulations; and self-disclosure or actions to correct a violation prior to discovery by PHMSA.\nIn addition, I may consider the economic benefit gained from the violation without any reduction\nbecause of subsequent damages, and such other matters as justice may require.\nThe Notice proposed a total civil penalty of $87,200 for the violations cited above. Effective\nMay 20, 2025, PHMSA revised its proposed civil penalty calculation policy to use the version of\nthe Civil Penalty Worksheet in effect when the alleged violation occurred. The new policy did\nnot change the proposed civil penalty in this case.\nItem 1: The Notice proposed a civil penalty of $20,800 for Respondent’s violation of 49 CFR\n§ 192.465(a), for failing to test its cathodic protection at least once each calendar year, but with\nintervals not to exceed 15 months, to determine whether the cathodic protection meets the\nrequirements of 49 CFR § 192.463. The new policy for calculating a proposed civil penalty did\nnot change the proposed civil penalty for this item. Spire requested a reduction of the civil\npenalty based on recent improvements to its field equipment and data collection processes for the\ncorrosion control activities. While I commend Spire’s improvement initiatives, such actions\ncannot cure the inadequate records from 2021 and 2022. The Associate Administrator for\nPipeline Safety has held that actions taken after a PHMSA inspection to address noncompliance\ndo not justify reducing a proposed civil penalty.2 Accordingly, having reviewed the record and\nconsidered the assessment criteria, I assess Respondent a civil penalty of $20,800 for violation of\n49 CFR § 192.465(a).\nItem 2: The Notice proposed a civil penalty of $23,000 for Respondent’s violation of 49 CFR\n§ 192.465(b)(1), for failing to inspect each cathodic protection rectifier six times each calendar\nyear, but with intervals not exceeding 2 ½ months between inspections, to ensure adequate\namperage and voltage levels needed to provide cathodic protection are maintained. The new\npolicy for calculating a proposed civil penalty did not change the proposed civil penalty for this\nitem. Spire requested a reduction of the civil penalty based on recent improvements to its field\nequipment and data collection processes for corrosion control activities. While I commend\nSpire’s improvement initiatives, such actions cannot cure the inadequate records from 2021,\n2022, and 2023. The Associate Administrator for Pipeline Safety has held that actions taken\nafter a PHMSA inspection to address noncompliance do not justify reducing a proposed civil\npenalty.3 Accordingly, having reviewed the record and considered the assessment criteria, I\nassess Respondent a civil penalty of $23,000 for violation of 49 CFR § 192.465(b)(1).\nItem 3: The Notice proposed a civil penalty of $20,400 for Respondent’s alleged violation of 49\nCFR § 192.475(a). Since this alleged violation has been withdrawn, the proposed penalty is not\nassessed.\n2 See, e.g., Algonquin Gas Transmission, LLC, Final Order, CPF No. 3-2022-061-NOPV, 2023 WL 3884045, at *4\n(June 6, 2023), https://primis.phmsa.dot.gov/enforcement-data/case/32022061NOPV.\n3 Id.\n\n\n\nCPF No. 5-2024-023-NOPV\nPage 6\nItem 5: The Notice proposed a civil penalty of $23,000 for Respondent’s violation of 49 CFR\n§ 192.481(a), for failing to conduct atmospheric corrosion inspections at least once every 3\ncalendar years, but with intervals not exceeding 39 months. The new policy for calculating a\nproposed civil penalty did not change the proposed civil penalty for this item. As noted above, I\nfound that Spire’s 2022 atmospheric corrosion inspection records did not violate 49 CFR\n§ 192.481(a). Accordingly, with respect to gravity, I reduce the instances of violation to “1” to\nreflect the missing 2019 atmospheric corrosion inspection records. Based upon the foregoing, I\nassess Respondent a reduced civil penalty of $20,400 for violation of 49 CFR § 192.481(a).\nIn summary, having reviewed the record and considered the assessment criteria for each of the\nItems cited above, I assess Respondent a reduced civil penalty of $64,200.\nPayment of the civil penalty must be made within 20 days after receipt of this Final Order.\nFederal regulations (49 CFR § 89.21(b)(3)) require such payment to be made by wire transfer\nthrough the Federal Reserve Communications System (Fedwire), to the account of the U.S.\nTreasury. Detailed instructions are contained in the enclosure. Questions concerning wire\ntransfers should be directed to: Financial Operations Division (AMK-325), Federal Aviation\nAdministration, Mike Monroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City,\nOklahoma 79169. The Financial Operations Division telephone number is (405) 954-8845.\nFailure to pay the civil penalty will result in accrual of interest at the current annual rate in\naccordance with 31 U.S.C. § 3717, 31 CFR § 901.9 and 49 CFR § 89.23. Pursuant to those same\nauthorities, a late penalty charge of six percent (6%) per annum will be charged if payment is not\nmade within 110 days of service. Furthermore, failure to pay the civil penalty may result in\nreferral of the matter to the Attorney General for appropriate action in a district court of the\nUnited States.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 5 in the Notice for violations of 49\nCFR § 192.481(a). Under 49 U.S.C. § 60118(a), each person who engages in the transportation\nof gas or who owns or operates a pipeline facility is required to comply with the applicable\nsafety standards established under chapter 601. In a recommendation for final action submitted\npursuant to section 190.209(b)(7), the Director recommended withdrawing the compliance order\nfor Item 5.\nTherefore, the compliance terms proposed in the Notice are not included in this Order.\nWARNING ITEMS\nWith respect to Items 4, 6, and 7, the Notice alleged probable violations of Part 192, but\nidentified them as warning items pursuant to section 190.205. The warnings were for:\n\n\n\nCPF No. 5-2024-023-NOPV\nPage 7\n49 CFR § 192.477 (Item 4) ─ Respondent’s alleged failure to check each coupon\nor other means of monitoring internal corrosion two times each calendar year, but\nwith intervals not exceeding 7 ½ months;\n49 CFR § 192.619(a) (Item 6) ─ Respondent’s alleged failure to operate its\npipeline below the maximum allowable operating pressure; and\n49 CFR § 192.739(a) (Item 7) ─ Respondent’s alleged failure to inspect and test\neach pressure relief device at intervals not exceeding 15 months, but at least once\neach calendar year.\nSpire presented information in its Response showing that it had taken certain actions to address\nthe cited items. If OPS finds a violation of any of these items in a subsequent inspection,\nRespondent may be subject to future enforcement action.\nUnder 49 CFR § 190.243, Respondent may submit a Petition for Reconsideration of this Final\nOrder to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey\nAvenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of\nChief Counsel, PHMSA, at the same address. The written petition must be received no later than\n20 days after receipt of the Final Order by Respondent. Any petition submitted must contain a\nbrief statement of the issue(s) and meet all other requirements of 49 CFR § 190.243. The filing\nof a petition automatically stays the payment of any civil penalty assessed. The other terms of\nthe order, including any corrective action, remain in effect unless the Associate Administrator,\nupon request, grants a stay. If Respondent submits payment of the civil penalty, the Final Order\nbecomes the final administrative decision and the right to petition for reconsideration is waived.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nCFR § 190.5.\n___________________________________ __________________________\nLinda Daugherty Date Issued\nActing Associate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":20952}