{"operation":"document","citation":"CPF 52025011NOPV","title":"INTERIOR GAS UTILITY — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2025-05-02","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.1007(d), 192.285(a)(2), 192.285(b)(2), 192.53(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52025011nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52025011nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52025011nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52025011NOPV","body":"Notice of Probable Violation involving INTERIOR GAS UTILITY. PHMSA's enforcement data identifies the cited regulations as 192.1007(d),  192.285(a)(2),  192.285(b)(2),  192.53(c). The case was opened on 2025-05-02 and is reported as closed as of 2025-09-18. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52025011NOPV_Closure Letter_09182025_(24-305759).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52025011NOPV/52025011NOPV_Closure%20Letter_09182025_(24-305759).pdf\n\n52025011NOPV_Closure Letter_09182025_(24-305759)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52025011NOPV/52025011NOPV_Closure%20Letter_09182025_(24-305759)_text.pdf\n\n52025011NOPV_Final Order_07232025_(24-305759).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52025011NOPV/52025011NOPV_Final%20Order_07232025_(24-305759).pdf\n\n52025011NOPV_Final Order_07232025_(24-305759)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52025011NOPV/52025011NOPV_Final%20Order_07232025_(24-305759)_text.pdf\n\n52025011NOPV_Operator Response to Notice_05302025_(24-305759).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52025011NOPV/52025011NOPV_Operator%20Response%20to%20Notice_05302025_(24-305759).pdf\n\n52025011NOPV_PCO_05022025_(24-305759).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52025011NOPV/52025011NOPV_PCO_05022025_(24-305759).pdf\n\n52025011NOPV_PCO_05022025_(24-305759)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52025011NOPV/52025011NOPV_PCO_05022025_(24-305759)_text.pdf\n\n52025011NOPV_Final Order_07232025_(24-305759)_text.pdf\n\nJuly 23, 2025\nVIA ELECTRONIC MAIL TO: esudduth@interiorgas.com\nMs. Elena Sudduth\nGeneral Manager\nInterior Gas Utility\n2525 Phillips Field Road\nFairbanks, AK 99709\nRe: CPF No. 5-2025-011-NOPV\nDear Ms. Sudduth:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and specifies actions that need to be taken to comply with the pipeline safety\nregulations. When the terms of the compliance order are completed, as determined by the\nDirector, Western Region, this enforcement action will be closed. Service of the Final Order by\ne-mail is effective upon the date of transmission and acknowledgement of receipt as provided\nunder 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nLinda Daugherty\nActing Associate Administrator\nfor Pipeline Safety\nEnclosures (Final Order and NOPV)\ncc: Mr. Dustin Hubbard, Director, Western Region, Office of Pipeline Safety\nMr. George Deal, Director of Operations, Interior Gas Utility, sdeal@interiorgas.com\n\n\n\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 )\nInterior Gas Utility, ) CPF No. 5-2025-011-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn May 2, 2025, pursuant to 49 C.F.R. § 190.207, the Director, Western Region, Office of\nPipeline Safety (OPS), issued a Notice of Probable Violation (Notice) to Interior Gas Utility\n(Respondent). The Notice proposed finding that Respondent had violated the pipeline safety\nregulations in 49 C.F.R. Part 192. The Notice also proposed certain measures to correct the\nviolations. Respondent did not contest the allegations of violation or corrective measures.\nBased upon a review of all of the evidence, pursuant to § 190.213, I find Respondent violated the\npipeline safety regulations listed below, as more fully described in the enclosed Notice, which is\nincorporated by reference:\n49 C.F.R. § 192.53(c) (Item 1) ─ Respondent failed to utilize material for pipe\nthat was qualified in accordance with the applicable requirements of Subpart B.\n49 C.F.R. § 192.285(a)(2) (Item 2) ─ Respondent failed to qualify its personnel\nto make plastic pipe joints in accordance with § 192.285(a)(2) because it did not\nhave and/or follow a procedure for making a specimen joint from pipe sections\nthat examined and tested heat fusion joint specimens using a method acceptable\nper § 192.285(b)(2).\n49 C.F.R. § 192.1007(d) (Item 3) Respondent failed to determine and implement\nan effective leak management plan.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nCompliance Actions\nPursuant to 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the\n\n\n\nactions proposed in the enclosed Notice to correct the violations. The Director may grant an\nextension of time to comply with any of the required items upon a written request timely\nsubmitted by the Respondent and demonstrating good cause for an extension. Upon completion\nof the ordered actions, Respondent may request that the Director close the case. Respondent\npreviously submitted evidence to show appropriate actions have been taken to correct the\nviolations. This evidence is currently under review by the Director. Failure to comply with this\nOrder may result in the assessment of civil penalties under 49 C.F.R. § 190.223 or in referral to\nthe Attorney General for appropriate relief in a district court of the United States.\nThe terms and conditions of this order are effective upon service in accordance with 49 C.F.R.\n§ 190.5.\n___________________________________ _________________________\nLinda Daugherty Date Issued\nActing Associate Administrator\nfor Pipeline Safety\n\n\n\nNOTICE OF PROBABLE VIOLATION\nand\nPROPOSED COMPLIANCE ORDER\nVIA ELECTRONIC MAIL TO: esudduth@interiorgas.com\nMay 2, 2025\nMs. Elena Sudduth\nGeneral Manager\nInterior Gas Utility\n2525 Phillips Field Road\nFairbanks, AK 99709\nCPF 5-2025-011-NOPV\nDear Ms. Sudduth:\nFrom August 5 to August 9, 2024, representatives of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code (U.S.C.), inspected Interior Gas Utility’s (IGU) Fairbanks and North Pole\ndistribution systems in Fairbanks North Star Borough, Alaska.\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 items inspected\nand the probable violations are:\n\n\n\n1. § 192.53 General.\nMaterials for pipe and components must be:\n(a)…\n(c) Qualified in accordance with the applicable requirements of this subpart.\nIGU failed to utilize material for pipe that was qualified in accordance with the applicable\nrequirements of Subpart B. During the inspection, an inspector from PHMSA observed a Teflon\nhose connection within the Fairbanks distribution system at IGU’s Storage Site 3. The hose\nconnected pressure measuring instrumentation to the steel distribution header piping.\nPer § 192.59, plastic pipe must be manufactured in accordance with a specification listed in\nAppendix B to Part 192.\nSubsequent to the field inspection, IGU provided to PHMSA manufacturer documentation for\nthe observed hose demonstrating it was an Eaton Everflex Hose. This manufacturer\ndocumentation indicated that the hose was made of Teflon (PTFE) and had a braided steel\nexterior. However, neither the manufacturer information, nor any other information obtained\nprovided evidence of the hose being manufactured to a specification listed in Appendix B to Part\n192, as required.\nAccordingly, IGU was in violation of § 192.53(c) for utilizing a material for pipe that was not\nqualified in accordance of Subpart B.\n2. § 192.285 Plastic pipe: Qualifying persons to make joints.\n(a) No person may make a plastic pipe joint unless that person has been qualified\nunder the applicable joining procedure by:\n(1)…\n(2) Making a specimen joint from pipe sections joined according to the procedure\nthat passes the inspection and test set forth in paragraph (b) of this section.\n(b) The specimen joint must be:\n(1)…\n(2) In the case of a heat fusion, solvent cement, or adhesive joint:\n(i) Tested under any one of the test methods listed under § 192.283(a), and for PE\nheat fusion joints (except for electrofusion joints) visually inspected in accordance\nwith ASTM F2620 (incorporated by reference, see § 192.7), or a written procedure\nthat has been demonstrated to provide an equivalent or superior level of safety,\napplicable to the type of joint and material being tested;\n(ii) Examined by ultrasonic inspection and found not to contain flaws that would\ncause failure; or\n(iii) Cut into at least 3 longitudinal straps, each of which is:\n(A) Visually examined and found not to contain voids or discontinuities on the cut\nsurfaces of the joint area; and\n(B) Deformed by bending, torque, or impact, and if failure occurs, it must not\ninitiate in the joint area.\n\n\n\nIGU failed to qualify its personnel to make plastic pipe joints in accordance with § 192.285(a)(2)\nbecause it did not have and/or follow a procedure for making a specimen joint from pipe sections\nthat examined and tested heat fusion joint specimens using a method acceptable per\n§ 192.285(b)(2).\nSection 192.285(b)(2) allows for various methods to be utilized to test and examine joint\nspecimens to determine adequate joining when qualifying joiners. During the inspection,\nPHMSA inspectors observed pictures of plastic pipe butt fusion joint specimen testing that\nshowed the test joints were cut axially in half and subsequently quality tested by bending the\naxial halves of the specimen. Testing methods not specifically described by § 192.285(b)(2) are\nnot adequate to qualify joiners unless a written procedure that has been previously demonstrated\nto provide an equivalent or superior level of safety, applicable to the type of joint and material\nbeing tested, is utilized. IGU did not provide a written procedure demonstrating equivalent or\nsuperior level of safety for butt fusion joint testing during the inspection.\nAccordingly, IGU was in violation of § 192.285(a)(2) for failing to follow a procedure to\nexamine and test heat fusion joint specimens via an acceptable method when qualifying\npersonnel to join plastic pipe.\n3. § 192.1007 – What are the required elements of an integrity management plan?\nA written integrity management plan must contain procedures for developing and\nimplementing the following elements:\n(a) ….\n(d) Identify and implement measures to address risks. Determine and implement\nmeasures designed to reduce the risks from failure of its gas distribution pipeline.\nThese measures must include an effective leak management program (unless all\nleaks are repaired when found).\nIGU failed to implement an effective leak management plan per § 192.1007(d).\nDuring the inspection, PHMSA inspectors reviewed record of a leak, found at meter #340152,\nthat was identified and graded as a Class 2 leak, pursuant to IGU’s procedures and leak grading\nguidelines, by an IGU technician in May 2024. IGU did not have record of the leak being\nmonitored and scheduled for repair nor did IGU have record that the repair of the leak had\noccurred.\nPHMSA inspectors and IGU personnel visited the meter location during the inspection on\nAugust 8, 2024, and IGU personnel tested for a leak via gas meter. Testing indicated a Class 2\nleak, per IGU’s procedures and leak grading guidelines, was occurring.\nAccordingly, IGU was in violation of § 192.1007(d) for failing to have an effective leak\nmanagement program.\n\n\n\nProposed Civil Penalty\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$272,926 per violation per day the violation persists, up to a maximum of $2,729,245 for a\nrelated series of violations. For violation occurring on or after December 28, 2023 and before\nDecember 30, 2024, the maximum penalty may not exceed $266,015 per violation per day the\nviolation persists, up to a maximum of $2,660,135 for a related series of violations. For violation\noccurring on or after January 6, 2023 and before December 28, 2023, the maximum penalty may\nnot exceed $257,664 per violation per day the violation persists, up to a maximum of $2,576,627\nfor a related series of violations. For violation occurring on or after March 21, 2022 and before\nJanuary 6, 2023, the maximum penalty may not exceed $239,142 per violation per day the\nviolation persists, up to a maximum of $2,391,412 for a related series of violations. For violation\noccurring on or after May 3, 2021 and before March 21, 2022, the maximum penalty may not\nexceed $225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for\na related series of violations. For violation occurring on or after January 11, 2021 and before\nMay 3, 2021, the maximum penalty may not exceed $222,504 per violation per day the violation\npersists, up to a maximum of $2,225,034 for a related series of violations. For violation\noccurring on or after July 31, 2019 and before January 11, 2021, the maximum penalty may not\nexceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for\na related series of violations.\nWe have reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to propose a civil penalty assessment at this time.\nProposed Compliance Order\nWith respect to Items 1, 2, and 3 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous\nMaterials Safety Administration proposes to issue a Compliance Order to Interior Gas Utility.\nPlease refer to the Proposed Compliance Order, which is enclosed and made a part of this\nNotice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators\nin Enforcement Proceedings. Please refer to this document and note the response options. All\nmaterial you submit in response to this enforcement action may be made publicly available. If\nyou believe that any portion of your responsive material qualifies for confidential treatment\nunder 5 U.S.C. §552(b), along with the complete original document you must provide a second\ncopy of the document with the portions you believe qualify for confidential treatment redacted\nand an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5 U.S.C. § 552(b).\nFollowing your receipt of this Notice, you have 30 days to respond as described in the enclosed\nResponse Options. If you do not respond within 30 days of receipt of this Notice, this constitutes\na waiver of your right to contest the allegations in this Notice and authorizes the Associate\nAdministrator for Pipeline Safety to find facts as alleged in this Notice without further notice to\nyou and to issue a Final Order. If you are responding to this Notice, we propose that you submit\nyour correspondence to my office within 30 days from receipt of this Notice. The Region\n\n\n\nDirector may extend the period for responding upon a written request timely submitted\ndemonstrating good cause for an extension.\nIn your correspondence on this matter, please refer to CPF 5-2025-011-NOPV and, for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nDustin Hubbard\nDirector, Western Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Enforcement Proceedings\ncc: PHP-60 Compliance Registry\nPHP-500 H. Keogh (#24-305759)\nMr. George Deal, Director of Operations, Interior Gas Utility – sdeal@interiorgas.com\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to Interior Gas Utility (IGU) a Compliance Order\nincorporating the following remedial requirements to ensure the compliance of Interior Gas\nUtility with the pipeline safety regulations:\nA. B. C. D. In regard to Item 1 of the Notice pertaining to the Teflon hose connection at\nStorage Site 3, IGU must replace the Teflon hose with piping acceptable for use\nper § 192.53 within 30 days of receipt of the Final Order and submit\ndocumentation this was completed to the Western Region Director.\nIn regard to Item 2 of the Notice pertaining to the testing of joint specimens for\nqualifying joiners, IGU must provide the Western Region Director with either (a)\nevidence that the observed method of joint testing has been demonstrated to\nprovide an equivalent or superior level, or (b) provide the Western Region\nDirector with a procedure adopted to provide for conformance with\n§ 192.285(b)(2) within 90 days of receipt of the Final Order.\nIn regard to Item 3 of the Notice pertaining to the observed gas leak, IGU must\nprovide the Western Region Director record of repair of the identified leak and an\nupdated leak management program that tracks and repairs leaks appropriately,\nwithin 60 days of receipt of the Final Order.\nIt is requested (not mandated) that Interior Gas Utility maintain documentation of\nthe safety improvement costs associated with fulfilling this Compliance Order and\nsubmit the total to Dustin Hubbard, Director, Western Region, Pipeline and\nHazardous Materials Safety Administration. It is requested that these costs be\nreported in two categories: 1) total cost associated with preparation/revision of\nplans, procedures, studies and analyses, and 2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\n\n52025011NOPV_Closure Letter_09182025_(24-305759)_text.pdf\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\nVIA ELECTRONIC MAIL TO: esudduth@interiorgas.com\nSeptember 18, 2025\nMs. Elena Sudduth\nGeneral Manager\nInterior Gas Utility\n2025 Phillips Field Road\nFairbanks, AK 99709\n12300 W. Dakota Ave., Suite 340\nLakewood, CO 80228\nCPF 5-2025-011-NOPV\nClosure Letter\nDear Ms. Sudduth:\nOn July 23, 2025, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued\na Final Order to Interior Gas Utility (IGU) in the above-referenced case. This Order included a\nCompliance Order requirement for IGU to take certain corrective actions.\nPer the terms of the Final Order, this enforcement action would be closed once IGU addressed\nthe deficiencies outlined in the Compliance Order. On September 17, 2025, IGU submitted to\nPHMSA the remainder of the documentation demonstrating the identified deficiencies had been\nremediated.\nAccordingly, this case is now closed. Thank you for your cooperation in this matter.\nSincerely,\nDustin Hubbard\nDirector, Western Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 H. Keogh (#24-305759)\nGeorge Deal, Director of Operations, Interior Gas Utility, sdeal@interiorgas.com","truncated":false,"body_characters":18780}