{"operation":"document","citation":"CPF 52024034NOPSO","title":"COLORADO SPRINGS, CITY OF — Safety Order","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"current","official":true,"published_on":"2024-10-21","effective_on":null,"summary":"OPEN safety order.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52024034nopso.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52024034nopso.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52024034nopso","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52024034NOPSO","body":"Safety Order involving COLORADO SPRINGS, CITY OF. The dataset does not identify a cited regulation for this case. The case was opened on 2024-10-21 and is reported as open. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52024034NOPSO_Consent Agreement and Order_09302025_(24-305110).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52024034NOPSO/52024034NOPSO_Consent%20Agreement%20and%20Order_09302025_(24-305110).pdf\n\n52024034NOPSO_Consent Agreement and Order_09302025_(24-305110)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52024034NOPSO/52024034NOPSO_Consent%20Agreement%20and%20Order_09302025_(24-305110)_text.pdf\n\n52024034NOPSO_Notice of Proposed Safety Order_10212024_(24-305110).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52024034NOPSO/52024034NOPSO_Notice%20of%20Proposed%20Safety%20Order_10212024_(24-305110).pdf\n\n52024034NOPSO_Notice of Proposed Safety Order_10212024_(24-305110)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52024034NOPSO/52024034NOPSO_Notice%20of%20Proposed%20Safety%20Order_10212024_(24-305110)_text.pdf\n\n52024034NOPSO_Notice of Proposed Safety Order_10212024_(24-305110)_text.pdf\n\nVIA E-MAIL TO: tdeal@csu.org\nOctober 21, 2024\nTravas Deal\nPresident/CEO\nColorado Springs Utilities\nPO BOX 1103\nColorado Springs, CO 80947\nCPF 5-2024-034-NOPSO\nDear Mr. Deal:\nEnclosed is a Notice of Proposed Safety Order (Notice) issued in the above-referenced case. The\nNotice proposes that you take certain measures with respect to your natural gas distribution system\nin Colorado Springs, Colorado1 to ensure pipeline safety. Your options for responding are set forth\nin the Notice. Your receipt of the Notice constitutes service of that document under 49 C.F.R.\n§ 190.5.\nWe look forward to a successful resolution to ensure pipeline safety. Please direct any questions\non this matter to me at 720-963-3160.\nSincerely,\nDustin Hubbard\nDirector, Western Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Notice of Proposed Safety Order\n1 The OPID for this asset is: 2568 (City of Colorado Springs).\n\n\n\nDEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWESTERN REGION\nLAKEWOOD, CO 80228\n____________________________________\n)\nIn the Matter of )\n)\nCity of Colorado Springs, Colorado, ) CPF No. 5-2024-034-NOPSO\n)\nRespondent )\n___________________________________)\nNOTICE OF PROPOSED SAFETY ORDER\nBackground and Purpose\nPursuant to Chapter 601 of title 49, United States Code (U.S.C.), the Colorado Public Utilities\nCommission (COPUC) and the Pipeline and Hazardous Materials Safety Administration\n(PHMSA) have initiated an on-site inspection and information review of the safety of Colorado\nSpring Utility’s (CSU) natural gas distribution system and Distribution Integrity Management\nProgram (DIMP) in Colorado Springs, Colorado.\nAs a result of the inspection, it appears that conditions exist on your pipeline facilities that pose a\npipeline integrity risk to public safety, property, or the environment. Pursuant to 49 U.S.C.\n§ 60117(l), PHMSA issues this Notice of Proposed Safety Order, notifying you of the preliminary\nfindings of the investigation, and proposing that you take measures to ensure that the public,\nproperty, and the environment are protected from the potential risk.\nPreliminary Findings\n• The affected pipeline system is located in Colorado Springs, Colorado and is a natural gas\ndistribution system composed of 2,751.70 miles of main lines and 185,677 service lines.2\nThis includes 1.87 miles of bare unprotected steel main lines, 0.22 miles of coated\nunprotected steel main lines, 808.49 miles of coated protected steel main lines, and\n1,941.12 miles of plastic main lines. The main lines vary in size, from diameters ranging\n2\" or less to over 12\". The system also includes 8,001 bare unprotected steel service lines,\n2,412 coated unprotected steel service lines, 15,616 coated protected steel service lines,\n2 See, CSU’s 2023 Annual Report, Part B – System Description, 1. General.\n\n\n\n155,301 plastic service lines, and 4,347 unknown or “other” service lines.\n3 The service\nlines vary in size, from diameters ranging 1\" or less to over 4\" thru 8\".\n• The “affected pipe” includes all bare unprotected steel pipelines within the affected\npipeline system including all main lines and all service lines fitting this description.\n• Approximately 320.5 miles of CSU’s main lines and 5,696 of CSU’s service lines were\ninstalled before 1970.4 In addition, 25.9 miles of CSU’s main lines and 15,982 of CSU’s\nservice lines have an unknown installation date. Corrosion impairs the serviceability or\nintegrity of pipelines, leading to an increased threat of failure.\n• On August 16, 2012, CSU implemented its DIMP Plan, Revision 1. This plan included a\nbare steel replacement program.5\n• Beginning in August 2017 and continuing through March 2018, COPUC conducted a\n“Comprehensive Corrosion Audit” of CSU’s pipeline corrosion program procedures and\nrecords for its gas distribution pipeline system.\n• On December 22, 2017, COPUC issued a Request for Information (RFI): Requirements for\nCorrosion Control, 49 CFR Part 192, Subpart I.6 In its February 14, 2018, RFI Response,\nCSU provided requested data for Items 1-3 of the RFI and requested an extension until\nMarch 30, 2018, for Item 4 of the RFI related to the requirements of 49 C.F.R.\n§ 192.465(e).7\n• In its March 30, 2018, RFI Response, CSU committed to a “systematic approach to enhance\n(its) Corrosion Control Program and to identify areas of Active Corrosion8 on non-\ncathodically protected buried steel pipe”, which included retention of outside consultant\nexpertise to make appropriate changes to its Corrosion Control Program by March 2020.9\n• On April 18, 2018, COPUC issued a Notice of Probable Violation to CSU for violating 49\nC.F.R §§ 192.457, 192.463, and 192.465.10 CSU documented the existence of the affected\npipe in its system, however CSU failed to cathodically protect its affected pipe as required\nby § 192.457(b)(3) and CSU failed to provide records of the initial and 3-year evaluations\nfor active corrosion on these lines as required by §192.465(e).\n3 “Other” indicates an unidentified pipe of any material not specifically designated on Form PHMSA F 7100.1-1\nAnnual Report for Calendar Year 2023 Gas Distribution System.\n4 See, CSU 2023 Annual Report, Part B – System Description, 4. Miles of Main and Number of Services by Decade\nof Installation\n5 See, CSU’s DIMP Revision 1, August 16, 2012, Section 8.2.1 Corrosion\n6 See, RFI-060-1347 Letter, December 22, 2017\n7 See, CSU’s RFI Response, February 14, 2018\n8 See § 192.3 Definitions, Active corrosion is defined as continuing corrosion, unless controlled, which could result\nin a condition detrimental to public safety.\n9 See, CSU’s RFI Response, March 30, 2018\n10 See, COPUC NPV 01-060-2018, April 18, 2018\n\n\n\n• On June 28, 2018, CSU and COPUC agreed on an alternate enforcement plan that\naddressed the compliance issues in lieu of issuing a civil penalty. As part of this plan, CSU\nhired a third-party consultant to conduct a Strength, Weakness, Opportunity, and Threats\n(SWOT) analysis of CSU’s Pipeline Safety Compliance Program (PSCP) and agreed to\npurchase Business Intelligence (BI) software to better manage its compliance work.11\n• From October 17 to 21, 2022, COPUC inspected CSU’s distribution pipeline system and\nDIMP. COPUC found CSU was not in compliance with §§ 192.457(b)(3) and § 192.465(e)\nfor its affected pipe. In 2023, PHMSA assumed responsibility for the enforcement of\nCOPUC investigations.\n• On April 12, 2023, CSU agreed to provide status reports to COPUC regarding CSU’s\nActive Corrosion Analysis Program.12 This improvement project plan was initiated in\nCSU’s March 30, 2018, RFI response, but CSU failed to produce any documents until\n2023. The following status reports were provided: The Generation 1 report titled “2020\nRecords Only Analysis of Bare/Unprotected Steel Main Lines” was submitted on May 31,\n2023. The Generation 2 report titled “2023 Records Only Analysis of Bare/Unprotected\nSteel Service Lines” was submitted on December 31, 2023.\n• The 2023 Active Corrosion Analysis report showed CSU had still failed to cathodically\nprotect its affected pipe as required by § 192.457(b)(3), despite finding multiple\nindications of active corrosion through direct assessment and leak surveys. Cathodic\nprotection testing records show CSU had never cathodically protected its affected pipe,\nresulting in active corrosion and a high number of Grade 1 and Grade 2 leaks.13 As of\nDecember 2023, 85% of approximately 3.47 miles of affected main line pipe was directly\nassessed and documented three instances of active corrosion. Leak surveys of CSU’s\naffected service line pipe from 2020 through 2022, identified 51 corrosion leaks and one\ninstance of pipe exposure with pitting. Of the 51 active corrosion leaks found, 32 were\nclassified as Grade 1 and 19 as Grade 2, all of which were hazardous to public safety.14\nMany of these service line leaks are located in residential neighborhoods and business\ndistricts, including high-occupancy and multi-story buildings.15 Any leak of natural gas\n11 See, CSU’s Response to NPV 01-060-2018 Letter, June 15, 2018, and Close-Out Letter, June 28, 2018\n12 See, Email Between CSU and COPUC - 3/28 Summary and Steps Forward, April 12, 2023\n13 Grade 1 leak is defined by the GPTC Guide as a leak that represents an existing or probable hazard to persons or\nproperty, and requires immediate repair or continuous action until the conditions are no longer hazardous. Grade 2\nleak is defined as a leak that is recognized as being non-hazardous at the time of detection, but requires scheduled\nrepair based on probable future hazard. See, GPTC Guide for Gas Transmission, Distribution, and Gathering Piping\nSystems, 2022 Edition, Guide Material Appendix G-192-11, Gas leakage control guidelines for natural gas systems,\nSection 5.5 Leak grades, Page 778\n14 See, 2023 Active Corrosion Analysis, 12/31/2023, Section 5 Active Corrosion Analysis, Attachment B, and\nAttachment D\n15 See, CSU DIMP Revision 4, March 28, 2022, Section 4 Definitions, Business District\n\n\n\nfrom the pipeline may migrate into a home or dwelling. Such breaches are a public safety\nrisk.\n• CSU failed to evaluate its affected pipe every 3 years at intervals not exceeding 39\nmonths as required by § 192.465(e). In Revision 1 of CSU’s DIMP Plan, dated August\n16, 2012, CSU noted the presence of affected pipe, but failed to document the evaluation\nof these pipelines for active corrosion until May 31, 2023, 10 years and 9 months later. In\nRevision 4 of CSU’s DIMP Plan, dated March 28, 2022, CSU noted failure of its affected\npipe would have a high consequence to public safety.16 Actively corroding affected pipe\nis detrimental to public safety, property and the environment. Failing to evaluate the\naffected pipe every 3 years at intervals not exceeding 39 months means the threat of\nfailure is unknown and has not been properly evaluated.\n• CSU’s natural gas distribution system serves the communities of Colorado Springs,\nManitou, Security, Widefield, Falcon, Colorado Centre and Gleneagle.17 The geographical\narea features a semi-arid climate with cold winters and warm summers. Temperatures range\nfrom around 15°F in winter to 85°F in summer, with an average annual rainfall of about\n16\". Soil types in the region vary, including sandy loam and clayey soils.\n• CSU's natural gas distribution system is divided into 46 pressure districts. Distribution\nmain lines are further divided into two pressure groups: the 150 psig maximum allowable\noperating pressure (MAOP) distribution system and 76 psig or less MAOP systems. The\n150 psig MAOP main line system is fed from the five city gate stations (from North to\nSouth: McClintock, North, South, Drennan and Security).18 Pressure districts are\nsummarized in Appendix A, Section 4 of CSU’s DIMP plan.\n19\n• According to the U.S. Census Bureau, Colorado Spring’s population density was projected\nto be 2,522 in 2023, based on an average growth rate of 1.66% since 2009.\n20 The general\nboundaries of the service territories are: North Gate Road to the North, Fontaine Boulevard\nto the South, Curtis Road to the East, and Slightly West of the community of Manitou\nSprings. In addition, Colorado Springs Utilities delivers natural gas to several local military\nbases including, the Air Force Academy, Fort Carson Army Post, Cheyenne Air Force\nStation, and Peterson Air Force Base.21 The distribution system traverses residential\nneighborhoods and business districts, including high-occupancy and multi-story buildings.\n16 See, CSU DIMP Revision 4, March 28, 2022, Appendix C, Section 1) Program Level Threat Identification Matrix\n17 See, CSU DIMP Revision 4, March 28, 2022, Section 1.0 Scope, Purpose, and Objectives\n18 See, CSU DIMP Revision 4, March 28, 2022, Section 5.3.2 Current Design\n19 See, CSU DIMP Revision 4, March 28, 2022, Appendix A, Table A-4 Pressure Districts Summary\n20 Population Density is computed by dividing the total population by Land Area Per Square Mile.\n21 See, CSU DIMP Revision 4, March 28, 2022, Section 1.0 Scope, Purpose, and Objectives\n\n\n\n• The number of unprotected or unidentified service lines increased from 12,669 in 2022 to\n14,760 in 2023, an increase of 2,091 service lines over a one-year period.\n22 CSU recognizes\nin its current DIMP plan, Appendix C, that corrosion is its highest frequency of failure23\nand the affected pipe is an elevated threat due to its proximity to residences and structures.24\nCSU has a bare steel replacement program. However, the current program would take\napproximately 80 years to replace all 8001 bare steel service lines25 at a rate of 100 service\nlines replaced per year.\n26 CSU is not replacing its affected pipe at a sufficient rate where it\nwill be able to mitigate the risks of failure for its remaining affected pipe. CSU must\nimplement a more effective leak mitigation plan designed to address these risks as required\nby § 192.1007(d).\n• In the last five years, there have been seven significant incidents that resulted in a house\nexplosion involving steel distribution lines nationwide.27 CSU’s affected pipe is an\nincreased safety risk to the people, property, and the environment. CSU must reduce the\nsafety risk by monitoring these pipelines with a more effective leak mitigation plan in\naddition to taking prompt remedial action such as renewing or replacing pipe.\nProposed Issuance of Safety Order\nSection 60117(l) of Title 49, United States Code, provides for the issuance of a safety order, after\nreasonable notice and the opportunity for a hearing, requiring corrective measures, which may\ninclude physical inspection, testing, repair, or other action, as appropriate. The basis for making\nthe determination that a pipeline facility has a condition or conditions that pose a pipeline integrity\nrisk to public safety, property, or the environment is set forth both in the above-referenced statute\nand 49 C.F.R. § 190.239, a copy of which is enclosed.\nIn deciding whether to issue an order, PHMSA must consider the following, if relevant: (1) the\ncharacteristics of the pipe and other equipment used in the pipeline facility, including the age,\nmanufacture, physical properties, and method of manufacturing, constructing, or assembling the\nequipment; (2) the nature of the material the pipeline facility transports, the corrosive and\ndeteriorative qualities of the material, the sequence in which the material is transported, and the\npressure required for transporting the material; (3) the aspects of the area in which the pipeline\nfacility is located, including climatic and geologic conditions and soil characteristics; (4) the\nproximity of the area in which the hazardous gas pipeline facility is located to environmentally\nsensitive areas; (5) the population density and population and growth patterns of the area in which\nthe pipeline facility is located; (6) any recommendation of the National Transportation Safety\n22 See, CSU 2022 and 2023 Annual Report, Part B – System Description, 1. General\n23 See, CSU DIMP Revision 4, March 28, 2022, Appendix C, Threats Chart\n24 See, CSU DIMP Revision 4, March 28, 2022, Appendix D, Utilities Threat Ranking 5\n25 See, CSU 2023 Annual Report, Part B – System Description, 1. General\n26 See, CSU DIMP Revision 4, March 28, 2022, Section 9.2.5 Bare Steel Services Renewals\n27 PHMSA Data Mart, 2019 – 2023 Advanced Incident Report, Gas Distribution\n\n\n\nBoard made under another law; (7) the likelihood that the condition will impair the serviceability\nof the pipeline; (8) the likelihood that the condition will worsen over time; and (9) the likelihood\nthat the condition is present or could develop on other areas of the pipeline.\nAfter evaluating the foregoing preliminary findings of fact and considering the characteristics of\nthe affected pipeline system, including the age of the pipe involved, the hazardous nature of the\nproduct transported, the existing and potential impacts to property and the environment, the\ncharacteristics of the geographical areas where the pipeline facility is located, including proximity\nto multi-story businesses and homes28\n, the previous failures to cathodically protect its affected\npipe as required by § 192.457(b)(3) and to provide records of the initial and 3-year evaluations for\nactive corrosion on these lines as required by §192.465(e), and the likelihood that the conditions\ncould worsen or develop on other areas of the pipeline and potentially impact its serviceability, it\nappears that the continued operation of the affected pipeline without corrective measures would\npose a pipeline integrity risk to public safety, property, or the environment.\nAccordingly, PHMSA issues this Notice of Proposed Safety Order to notify Respondent of the\nproposed issuance of a safety order and to propose that Respondent take measures specified herein\nto address the potential risk.\nProposed Corrective Measures\nPursuant to 49 U.S.C. § 60117(l) and 49 C.F.R. § 190.239, PHMSA proposes to issue to CSU a\nsafety order incorporating the following remedial requirements with respect to the affected\npipeline:\n1. 2. Definitions: For the purpose of this Notice, the following terms are defined as:\na. “Director” is the Director, Western Region, Office of Pipeline Safety (OPS),\nPipeline and Hazardous Materials Safety Administration (PHMSA);\nb. “Effective Date” is the date a Safety Order is issued;\nc. “Affected Pipeline System” means CSU’s natural gas distribution system\ncomposed of 2,751.70 miles of main lines and 185,677 service lines.\nd. “Affected Pipe” means the bare unprotected steel pipelines within the Affected\nPipeline System including all main lines and service lines that meet that description.\ne.\nRemedial Work Plan: Within 60 days of the Effective Date, CSU must develop and submit\nto the Director for approval a written Remedial Work Plan that includes corrective\nmeasures.\na. The work plan must include:\ni. Identification of all affected pipe.\n28 See, CSU DIMP Revision 4, March 28, 2022, Section 4 Definitions, Business District\n\n\n\n3. ii. Identification of remedial actions necessary to address non-compliance on\nall affected pipe.\niii. A schedule to remediate the identified affected pipe. When considering the\nremediation schedule, CSU must prioritize lines that pose the greatest risk\nto safety and the environment. When assessing the level of risk, CSU must\nconsider the following factors: leak frequency, pressure, volume of leakage,\nlocation of piping, location of dwelling and other structures.\niv. The remediation schedule shall include proposed timelines for the\nfollowing:\n1. installing additional CP,\n2. recoating the pipe,\n3. replacing the pipe29, or\n4. repairing the pipe.\nv. A schedule for the performance of additional field testing, inspections, and\nevaluations to determine whether and to what extent the conditions\ndescribed in this Notice are present elsewhere on the affected pipeline\nsystem. Make the results of the inspections, field excavations, and\nevaluations available to PHMSA or its representatives.\nvi. All repairs or other corrective measures proposed in the Remedial Work\nPlan must fully remediate the identified risk conditions.\nvii. The Plan must include provisions for continuing long-term periodic testing\nand integrity verification measures to ensure the ongoing safe operation of\nthe pipeline considering the results of the analyses, inspections, and\ncorrective measures undertaken pursuant to the Safety Order.\nb. CSU may revise the Remedial Work Plan as necessary to incorporate new\ninformation obtained during the evaluations and associated remedial activities.\nCSU must submit any such Plan revisions to the Director for prior approval. The\nDirector may approve plan elements incrementally. The Remedial Work Plan shall\nbecome incorporated into the Safety Order.\nc. CSU must implement the Plan as it is approved by the Director, including any\nrevisions to the Plan.\nLeak Mitigation Plan: Within 60 days of the Effective Date, CSU must determine and\nimplement measures designed to reduce the risks of failure of its affected pipe as required\nby § 192.1007(d). Specifically, CSU must develop and implement an effective Leak\nMitigation Plan that includes, at minimum:\na. Leak surveys on all affected pipe and unidentified distribution lines must take place\nevery three months.30\n29 Pipe replacement may include \"renewal\" of the pipe where plastic pipe is inserted into an existing pipeline. See,\nCSU DIMP Revision 4, March 28, 2022, Appendix A, Table A-2 Pipe Installation Method History\n30 See, GPTC Guide for Gas Transmission, Distribution, and Gathering Piping Systems, 2022 Edition, §192.723\nDistribution systems: Leakage surveys, Section 1.3 Increased frequency, Page 403\n\n\n\nb. Classification of all leaks as defined by the Gas Piping Technology Committee\nGuide 2022 Edition (GTPC Guide).\nc. Repair of identified leaks in accordance with the below schedule:\ni. Grade 1 leaks must be repaired or replaced promptly as required by\n§ 192.703(c).\nii. iii. Grade 2 leaks must be repaired or replaced within six months.\nGrade 3 leaks must be monitored every three months as part of the leak\nmanagement program.\nd. CSU must implement the Leak Mitigation Plan as it is approved by the Director,\nincluding any future revisions to the Plan.\n4. Quarterly Reports: Submit quarterly reports to the Director and COPUC that: (1) include\navailable data and results of the testing and evaluations required by the safety order; and\n(2) describe the progress of the repairs and other remedial actions being undertaken.\n5. Extensions of Time: The Director may grant an extension of time for compliance with any\nof the terms of the safety order upon a written request timely submitted demonstrating good\ncause for an extension.\n6. Appeals: Respondent may appeal any decision of the Director to the Associate\nAdministrator for Pipeline Safety. Decisions of the Associate Administrator shall be final.\n7. Documentation of Costs: It is requested (not mandated) that CSU maintain documentation\nof the safety improvement costs associated with fulfilling this Safety Order and submit the\ntotal to Dustin Hubbard, Director, Western Region, Pipeline and Hazardous Materials\nSafety Administration. It is requested that these costs be reported in two categories: 1) total\ncost associated with preparation/revision of plans, procedures, studies and analyses, and 2)\ntotal cost associated with replacements, additions and other changes to pipeline\ninfrastructure.\nThe actions proposed by this Notice of Proposed Safety Order are in addition to and do not waive\nany requirements that apply to Respondent’s pipeline system under 49 C.F.R. Parts 190 through\n199, under any other order issued to Respondent under authority of 49 U.S.C. § 60101 et seq., or\nunder any other provision of Federal or state law.\nAfter receiving and analyzing additional data in the course of this proceeding and implementation\nof the work plan, PHMSA may identify other safety measures that need to be taken. In that event,\nRespondent will be notified of any proposed additional measures and, if necessary, amendments\nto the work plan or safety order.\n\n\n\nResponse to this Notice\nIn accordance with § 190.239, CSU has 30 days following receipt of this Notice to submit a\nwritten response to the official who issued the Notice. If CSU does not respond within 30 days,\nthis constitutes a waiver of its right to contest this Notice and authorizes the Associate\nAdministrator for Pipeline Safety to find facts as alleged in this Notice without further notice to\nCSU and to issue a Safety Order. In CSU’s response, CSU may notify that official that CSU\nintends to comply with the terms of the Notice as proposed, or CSU may request that an informal\nconsultation be scheduled (CSU will also have the opportunity to request an administrative\nhearing before a safety order is issued). Informal consultation provides CSU with the opportunity\nto explain the circumstances associated with the risk condition(s) alleged in the notice and, as\nappropriate, to present a proposal for a work plan or other remedial measures, without prejudice\nto CSU’s position in any subsequent hearing.\nIf CSU and PHMSA agree within 30 days of informal consultation on a plan and schedule for\nyou to address each identified risk condition, we may enter into a written consent agreement\n(PHMSA would then issue an administrative consent order incorporating the terms of the\nagreement). If a consent agreement is not reached, or if CSU has elected not to request informal\nconsultation, CSU may request an administrative hearing in writing within 30 days following\nreceipt of the Notice or within 10 days following the conclusion of an informal consultation that\ndid not result in a consent agreement, as applicable. Following a hearing, if the Associate\nAdministrator finds the facility to have a condition that poses a pipeline integrity risk to the\npublic, property, or the environment in accordance with § 190.239, the Associate Administrator\nmay issue a safety order.\nBe advised that all material CSU submits in response to this enforcement action is subject to\nbeing made publicly available. If CSU believes that any portion of its responsive material\nqualifies for confidential treatment under 5 U.S.C. 552(b), along with the complete original\ndocument you must provide a second copy of the document with the portions CSU believes\nqualify for confidential treatment redacted and an explanation of why CSU believes the redacted\ninformation qualifies for confidential treatment under 5 U.S.C. 552(b).\nIn your correspondence on this matter, please refer to CPF 5-2024-034-NOPSO and for each\ndocument you submit, please provide a copy in electronic format whenever possible.\n___________________________________ __________________\nDustin Hubbard Date issued\nDirector, Western Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\n\n\n\nPHP-500 J. Berry, J. Luo (#24-305110)\nCasey Hensley, COPUC Program Manager - Casey.Hensley@state.co.us\n\n52024034NOPSO_Consent Agreement and Order_09302025_(24-305110)_text.pdf\n\nSeptember 30, 2025\nVIA ELECTRONIC MAIL TO: tdeal@csu.org\nTravas Deal\nPresident/CEO\nColorado Springs Utilities\nPO Box 1103\nColorado Springs, Colorado 80947\nCPF No. 5-2024-034-NOPSO\nDear Mr. Deal:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement between\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA) and Colorado Springs\nUtilities, an enterprise of the City of Colorado Springs, Colorado, which was executed on\nSeptember 4, 2025. Service of the Consent Order and Consent Agreement by electronic mail is\ndeemed effective upon the date of transmission and acknowledgement of receipt, or as otherwise\nprovided under 49 CFR § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nLinda Daugherty\nActing Associate Administrator\nfor Pipeline Safety\nEnclosure: Consent Order and Consent Agreement\ncc: Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA\nDavid Beckett, Senior Attorney, Utilities Division, Office of the City Attorney for\nColorado Springs, David.Beckett@coloradosprings.gov\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 )\n)\n)\nColorado Springs Utilities, an enterprise of the City of Colorado Springs Colorado)\n)\nRespondent. )\n________________________________________________)\n) CPF No. 5-2024-034-NOPSO\nCONSENT ORDER\nBy letter dated October 21, 2024, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Proposed Safety Order (Notice) to\nThe City of Colorado Springs, Colorado. In accordance with 49 CFR § 190.239, the Notice\nalleged that conditions exist on the natural gas distribution system in Colorado Springs, Colorado\nthat pose an integrity risk to public safety, property, or the environment. The Notice also\nproposed that the City of Colorado Springs, Colorado take certain corrective measures to remedy\nthe alleged conditions and ensure that the public, property, and the environment are protected\nfrom the potential risk.\nIn response to the Notice, Colorado Springs Utilities (CSU or Respondent), an enterprise of the\nCity of Colorado Springs, Colorado, requested an informal consultation, whereupon the parties\nengaged in discussions. As a result of those discussions, the Parties have agreed to a Consent\nAgreement that settles all of the allegations in the Notice.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nConsent Order issued pursuant to § 190.219. CSU is hereby ordered to comply with the terms of\nthe Consent Agreement pursuant to its terms. Pursuant to 49 U.S.C. § 60101, et seq., failure to\ncomply with this Consent Order may result in the assessment of civil penalties as set forth in\n49 U.S.C. § 60122 and 49 CFR § 190.223, or in referral to the Attorney General for appropriate\nrelief in a district court of the United States.\nThe terms and conditions of this Consent Order are effective upon service in accordance with\n49 CFR § 190.5.\n______________________ ______________________\nLinda Daugherty Date Issued\nActing Associate Administrator\nfor Pipeline Safety\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 )\n)\n)\nColorado Springs Utilities, an enterprise of the City of Colorado Springs, Colorado)\n)\nRespondent. )\n________________________________________________ )\n) CPF No. 5-2024-034-NOPSO\nCONSENT AGREEMENT\nThe Director, Western Region, Office of Pipeline Safety (OPS), Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) (Director), issued to the City of Colorado Springs,\nColorado by letter dated October 21, 2024, a Notice of Proposed Safety Order (Notice). In\naccordance with 49 CFR § 190.239, the Notice alleged that conditions exist on the natural gas\ndistribution system in Colorado Springs, Colorado that pose a pipeline integrity risk to public\nsafety, property, or the environment. The Notice also proposed that Colorado Springs Utilities\n(CSU or Respondent) Colorado take certain corrective measures to remedy the alleged\nconditions and ensure that the public, property, and the environment were protected from the\npotential risk.\nCSU is an enterprise of the City of Colorado Springs, Colorado, a Colorado home rule city and\nmunicipal corporation. CSU owns and operates the natural gas distribution system referenced in\nthe Notice. CSU is the municipal utility that provides natural gas service in and around Colorado\nSprings, Colorado. CSU responded on October 23, 2024, and requested an informal consultation\npursuant to 49 CFR § 190.239(b)(2). The first informal consultation was held on November 14,\n2024. On November 19, 2024, CSU emailed the Director by attaching its November 18, 2024\nletter requesting an extension of time until January 31, 2025, to formally respond to the Notice,\nas well as another informal consultation. On January 27, 2025, a second informal consultation\nwas held. On January 31, 2025, CSU provided its draft Remedial Work Plan and Leak\nMitigation Plan to PHMSA. On February 12, 2025, a final informal consultation was held. In\nresponse to a request for additional information made on March 12, 2025, CSU provided\nadditional material to PHMSA on April 3, 2025.\n\n\n\nAs a result of the informal consultation process, PHMSA and Respondent (the Parties) agree that\nsettlement of this proceeding by entry into this Consent Agreement (Agreement) is the most\nappropriate means of resolving the issues raised in the Notice, will avoid further administrative\nproceedings or litigation, and is in the public interest. Therefore, pursuant to 49 CFR §§ 190.219\nand 190.239(b)(2), without adjudication of any issue of law or fact, and upon consent and\nagreement, the Parties agree to the following terms and conditions.\nI. General Provisions:\n1. Respondent acknowledges that as the operator of the pipeline facilities subject to\nthe Notice, Respondent and its referenced pipeline facilities are subject to the jurisdiction of the\nFederal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative\norders issued thereunder. For purposes of this Agreement, Respondent acknowledges that it\nreceived proper notice of PHMSA’s action in this proceeding and that the Notice states claims\nupon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq., and the regulations and\norders issued thereunder.\n2. Respondent does not admit or deny any of the allegations in the Notice but\nagrees, for purposes of this Agreement, to address the integrity risks identified in the Notice by\ncompleting the actions specified in Section III of this Agreement (Corrective Measures) and to\nabide by the terms of this Agreement.\n3. After Respondent returns this signed Agreement to PHMSA, the Agency’s\nrepresentative will present it to the Associate Administrator for Pipeline Safety, recommending\nthat the Associate Administrator adopt the terms of this Agreement by issuing an administrative\norder (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement\nconstitute an offer of settlement until accepted by the Associate Administrator. Once accepted,\nthe Associate Administrator will issue a Consent Order incorporating the terms of this\nAgreement.\n4. Respondent consents to the issuance of the Consent Order, and hereby waives\nany further procedural requirements with respect to its issuance. Respondent waives all rights to\ncontest the adequacy of notice, or the validity of the Consent Order or this Agreement, including\nall rights to administrative or judicial hearings or appeals, except for the Dispute Resolution\nprovisions set forth herein.\n5. This Agreement shall apply to and be binding upon PHMSA and Respondent, its\nofficers, directors, employees, and its successors, assigns, or other entities or persons otherwise\nbound by law. Respondent agrees to provide a copy of this Agreement and any incorporated\nwork plans and schedules to all of Respondent’s officers, employees, and agents whose duties\nmight reasonably include compliance with this Agreement.\n\n\n\n6. For all transfers of ownership or operating responsibility of Respondent’s pipeline\nsystem referenced herein, Respondent will provide (a) a copy of this Agreement to the\nprospective transferee at least 30 calendar days prior to such transfer and (b) written notice of the\ntransfer to the Director no later than 60 calendar days after the transfer occurs.\n7. This Agreement constitutes the final, complete, and exclusive agreement and\nunderstanding between the Parties with respect to the allegations in the Notice and the settlement\nembodied in this Agreement. The Parties acknowledge that there are no representations,\nagreements or understandings relating to settlement other than those expressly contained in this\nAgreement, except that the terms of this Agreement may be construed by reference to the Notice.\nThe terms of this Agreement will control in the event of conflict.\n8. Nothing in this Agreement affects or relieves Respondent of its responsibility to\ncomply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101,\net seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters\nPHMSA's right of access, entry, inspection, and information gathering or PHMSA's authority to\nbring enforcement actions against Respondent pursuant to the Federal pipeline safety laws, the\nregulations and orders issued thereunder, or any other provision of applicable Federal or State\nlaw.\n9. This Agreement does not waive or modify any Federal, State, or local laws or\nregulations that are applicable to Respondent’s pipeline systems. This Agreement is not a\npermit, or a modification of any permit, under any Federal, State, or local laws or regulations.\nRespondent remains responsible for achieving and maintaining compliance with all applicable\nFederal, State, and local laws, regulations and permits.\n10. This Agreement does not create rights in, or grant any cause of action to, any third\nparty not party to this Agreement. Pursuant to Colorado Springs City Code Section 12.1.109, all\ncontracts executed in the name of “Colorado Springs Utilities”, including this Agreement, shall\nbe interpreted or construed by any reviewing body as having been executed by the City of\nColorado Springs on behalf of CSU. The U.S. Department of Transportation is not liable for any\ninjuries or damages to persons or property arising from acts or omissions of Respondent or its\nofficers, employees, or agents carrying out the work required by this Agreement. The U.S.\nDepartment of Transportation, its officers, employees, agents, and representatives shall not be\nliable for any cause of action arising from any acts or omissions of Respondent or its contractors\nin carrying out any work required by this Agreement.\n11. This Agreement does not constitute a finding of violation of any Federal law or\nregulation and may not be used in any civil proceeding of any kind as evidence or proof of any\nfact, fault or liability, or as evidence of a violation of any law, rule, regulation, or requirement,\nexcept in a proceeding to enforce the provisions of this Agreement.\n\n\n\nII. Definitions:\n12. “Affected Pipeline System” means CSU’s natural gas distribution system\ncomposed of 2,781.413 miles of main lines and 188,199 service lines, as noted in its 2024 Gas\nDistribution Annual Report.\n13. “Affected Pipe” means (a) the coated unprotected steel main lines and services\nlines and (b) the bare unprotected steel main lines and service lines within CSU’s Affected\nPipeline System.\n14. The “Director” means the Director, Western Region, OPS, PHMSA\nIII. Corrective Measures:\n15. Prioritization Process. Within 75 calendar days of the Effective Date of this\nAgreement, CSU shall prioritize the Affected Pipe for mitigation in accordance with its\nDistribution Integrity Management Plan (DIMP). The prioritization process will consider the\nfollowing factors:\nA. B. C. D. Risk Model Results: CSU will calculate risk on the Affected Pipe using Gas\nTechnology Institute’s (GTI) Distribution Risk Assessment Model (DRAM).\nCSU will use DRAM to assess and prioritize pipelines for mitigation, taking into\naccount factors such as leak frequency, pressure, piping location, and proximity to\nstructures. CSU will prioritize mitigating the Affected Pipe with","truncated":true,"body_characters":55890}