RegulusPipeline researchPHMSA arog-2019-underground-natural-gas-storage-program-evaluation
AR UNGS Program Evaluation, 2019, page 1Official PDFPHMSA UNDERGROUND NATURAL GAS STORAGE (UNGS) Arkansas OGC PROGRAM EVALUATION – CY2019 CONDUCTED 08/11-14/2020 A – PROGRESS REPORT AND PROGRAM DOCUMENTATION REVIEW 9 of 9 B – PROGRAM INSPECTION PROCEDURES 8 of 8 (14) C – PROGRAM PERFORMANCE 31 of 31 (34) D – COMPLIANCE ACTIVITIES 21 of 21 E – INCIDENT INVESTIGATIONS 11 of 11 (13) F – DAMAGE PREVENTION 4 of 4 G – FIELD INSPECTIONS 12 of 12 H - 60106 AGREEMENT STATE (if applicable) NA (6) TOTAL PROGRAM EVALUATION POINTS 96 OF 96 (113)#
AR UNGS Program Evaluation, 2019, page 2PHMSA UNGS STATE PROGRAM EVALUATION – CY2019 A – PROGRESS REPORT AND PROGRAM DOCUMENTATION REVIEW THIS SECTION ANALYZES ACCURACY AND COMPLETENESS OF ANNUAL PROGRESS REPORT SCORE 1 Accuracy of Jurisdictional Authority and Operator/Inspection Units Data – Progress Report Attachment 1 (Yes= 1 point, No= 0 Points, NI=.5 point) Comments: Yes. Attachment 1 agrees with attachments 3 & 8, and AOGC records. 1 2 Review of Inspection Days for accuracy – Progress Report Attachment 2 (Yes= 1 point, No= 0 Points, NI=.5 point) Comments: Yes. Attachment 2 agrees with AOGC records. 1 3 Accuracy verification of Operators and Operators Inspection Units in State – Progress Report Attachment 3 (Yes= 1 point, No= 0 Points, NI=.5 point) Comments: Yes. 1 operator & 2 Units. Agrees with AOGC records. 1 4 Accuracy verification of Compliance Activities – Progress Report Attachment 5 (Yes= 1 point, No= 0 Points, NI=.5 point) Comments: Yes. There were no compliance actions and no fines in 2019. 1 5 Were UNGS program files well-organized and accessible? - Progress Report Attachment 6 (Yes= 2 points, No= 0 Points, NI=1 point) Comments: Yes. This is a micro program. All files are electronic. 2 6 Was employee listing and completed training accurate and complete? – Progress Report Attachment 7 (Yes= 1 point, No= 0 Points, NI=.5 point) Comments: Yes. Agrees with AOGC records. 1 7 Verification of Part 192 and 199 Rules and Amendments – Progress Report Attachment 8 (Yes= 1 point, No= 0 Points) Comments: yes. Agrees with AOGC records. Noted the 213k & 2.13M fining authority. 1 8 List of Planned Performance - Did State describe accomplishments on Progress Report in detail – Progress Report Attachment 10 (Yes= 1 point, No= 0 Points, NI=.5 point) Comments: Yes. Attachment 10 was properly filled out. 1 9 General Comments: W. Frank Morledge, Chairman, Arkansas Oil & Gas Commission, 205 North Washington Street, Forrest City, Arkansas 72335; Gary Looney, Assistant Director; Patrick Gaume, PHMSA. UNGS PROGRESS REPORT REVIEW score is 50 of 50: No incidents were reported in UNGS for 2019. Part A scored 9 of 9 points. 9#
AR UNGS Program Evaluation, 2019, page 3B – PROGRAM INSPECTION PROCEDURES Does State Inspection Plan include procedures that address the following elements? (See Guidelines Section 5.1) 1 Does State have written inspection procedures? (Yes= 2 points, No= 0 Points, NI=1 point) Comments: Yes, a copy of the AOGC Pipeline Procedures was modified to become the UNGS Procedures. 2 Standard Inspections inspections Do Standard Inspection procedures give guidance to State inspectors that insure consistency for conducted by the State? The following elements should be addressed at a minimum. • Pre-Inspection Activities • Inspection Activities • Post Inspection Activities (Yes= 2 points, No= 0 Points, NI=1 point) Comments: Yes. Standard Inspection procedures are contained in Section VI, VII, and VIII of the AOGC UNGS Inspection Guidelines. 3 Specialized Inspections for inspections Do Specialized Inspection procedures give guidance to State inspectors that insure consistency conducted by the State? The following elements should be addressed at a minimum. • Pre-Inspection Activities • Inspection Activities • Post Inspection Activities (Yes= 2 points, No= 0 Points, NI=1 point) Comments: Yes. Special Inspections are part of Standard and are contained in Section VI, VII, and VIII of the AOGC UNGS Inspection Guidelines. 4 Design, Testing, and Construction Inspections Do Design, Testing, and Construction Inspection procedures give guidance to State inspectors that insure consistency for Inspections conducted by the State? The following elements should be addressed at a minimum. • Pre-Inspection Activities • Inspection Activities • Post Inspection Activities (Yes= 1 point, No= 0 Points, NI=.5 point) Comments: Yes. Design, Testing, and Construction Inspection procedures are contained in Section IX of the AOGC UNGS Inspection Guidelines. 2 2 2 1#
AR UNGS Program Evaluation, 2019, page 45 Drug and Alcohol Inspections Do Drug and Alcohol Inspection procedures give guidance to State inspectors that insure consistency for Inspections conducted by the State? The following elements should be addressed at a minimum. • Pre-Inspection Activities • Inspection Activities • Post Inspection Activities (Yes= 1 point, No= 0 Points, NI=.5 point) Comments: Yes. D&A is part of Standard Inspection procedures and are contained in Sections V, VI, VII, and VIII of the AOGC UNGS Inspection Guidelines. 6 Does inspection plan address inspection priorities of each inspection unit, based on the following elements? • Length of time since last inspection (Within five-year interval per inspection unit) • Operating history of operator/unit and/or location (includes leakage, incident and compliance activities) • Type of activity being undertaken by operators in inspection units (i.e. construction) • Locations of operator’s inspection units being inspected - (HCA's, Geographic area, Population Density, etc.) • Process to identify high-risk inspection units considering integrity threats • Are inspection units broken down appropriately? (Yes= 6 points, No= 0 Points, NI=1-5 points) Comments: NA. Program has only 1 Operator and 2 Units. It is better to risk assess individual wells for a UNGS program of this size, which is being done. 7 General Comments: Part B scored 8 of 8 points. B6 was NA. 1 NA 14#
AR UNGS Program Evaluation, 2019, page 5C – PROGRAM PERFORMANCE 1 Was ratio of Total Inspection Person-Days to Total Person-Days acceptable? (Chapter 4.2) A = Total Inspection Person Days (Attachment 2) B = Total Inspection Person Days Charged to the program (220 x Number of Inspection person years from Attachment 7) Ratio = A/B If Ratio >= .38 then score = 5 points. If Ratio < .38 then score = 0 points. (Yes= 5 points, No= 0 Points) Comments: Exception granted due to size of Program and all necessary inspections were performed. 5 of 5 points. 0.05 inspector years, 4 field inspection days. 4/(220*0.05)=.364, < .38 fail, below minimum. 5 2 Has each Inspector and Program Manager fulfilled the TQ Training Requirements? (See Guidelines Appendix C for requirements and Chapter 4.3.1) (Yes= 5 points, No= 0 Points, NI=1-4) Comments: Yes, Gary & Bryan have taken the UNGS TQ Course. 5 3 Does State use the PHMSA Inspection Assistant (IA) program to document inspections? (Yes= 2 points, No= 0 Points, NI=1 point) Comments: Okay. AOGC staff became registered to use IA in December 2019. IA is being used for 2020 work. 2 4 Did records and discussions with Program Manager indicate adequate knowledge of PHMSA program and regulations? Chapter 4.1,8.1 (Yes= 2 points, No= 0 Points, NI=1 point) Comments: Yes. Gary is a skilled and experienced Program Manager. 2 5 Did State respond to PHMSA's Evaluation Letter within 60 days and correct or address any noted deficiencies? Chapter 8.1 (Yes= 2 points, No= 0 Points, NI=1 point) Comments: Yes. Dates were 10/22/2019 & 12/16/2019. 2 6 Did State inspect all types of operators and inspection units in accordance with time intervals established in their written procedures? Chapter 5.1 (Yes= 5 points, No= 0 Points, NI=1-4 points) Comments: Yes. There is one operator and two Units. Standard Insp was 9/17-18/2019. D&A was 8/11/2020. 5 7 Did State Inspection form(s) cover all applicable code requirements addressed on Federal Inspection form(s)? Chapter 5.1 (Yes= 2 points, No= 0 Points, NI=1 point) Comments: Yes. All questions were asked and all code portions were included, IA was used starting in 2020. 2 8 Did State complete all applicable portions of inspection forms? (Yes= 2 points, No= 0 Points, NI=1 point) Comments: Yes. All questions were asked and all code portions were included during 2018 & 2019; IA was used in 2020 for D&A. Some portions are addressed each year to provide an opportunity to visit the operator every year. 2#
AR UNGS Program Evaluation, 2019, page 69 Has the State reviewed Operator Annual reports, along with Incident/Accident reports, for accuracy and analyzed data for trends and operator issues? (Yes= 2 points, No= 0 Points, NI=1 point) Comments: Yes. The annual report has been reviewed. 10 Is the State verifying operators are conducting drug and alcohol tests required by regulations? This should include verifying positive tests are responded to in accordance with program. 49 CFR 199 (Yes= 2 points, No= 0 Points, NI= 1 point) Comments: Yes. A long Form D&A was performed on 8/11/2020, during the 3rd year of the program. 11 Does the State have a mechanism for communicating with stakeholders regarding the inspection and enforcement program? (This should include making enforcement cases available to public). (Yes= 1 points, No= 0 Points, NI=.5 point) Comments: Yes. The AOGC has included inspection reports and compliance cases on its website for public access. 12 Did State execute appropriate follow-up actions to Safety Related Condition (SRC) Reports? Chapter 6.3 (Yes= 1 points, No= 0 Points, NI=.5 point) Comments: NA. no SRC have been reported, ever. 13 Did the State participate in/respond to surveys or information requests from PHMSA? (Yes= 1 points, No= 0 Points, NI=.5 point) Comments: Yes. The AOGC responds to all surveys and request for information from PHMSA and/or NAPSR. 14 Did the State forward any potential waivers/permits to PHMSA for review prior to issuing them to operators? (Yes= 1 point, No= 0 Points, NI=.5 point) Comments: NA. No waivers or special permits have been issued. 15 If the State has issued any waivers/special permits for any operator, has the State verified conditions of those waivers/special permits are being met? This should include having the operator amend procedures where appropriate. (Yes= 1 point, No= 0 Points, NI=.5 point) Comments: NA. No waivers or special permits have been issued. 16 General Comments: Part C scored 31 of 31. C12, C14, & C15 were NA. 2 2 1 NA 1 NA NA 34#
AR UNGS Program Evaluation, 2019, page 7D – COMPLIANCE ACTIVITIES 1 Does the State have written procedures to identify steps to be taken from the discovery to resolution of a probable violation? Chapter 5.1 • Procedures to notify an operator (company officer) when a noncompliance is identified • Procedures to routinely review progress of compliance actions to prevent delays or breakdowns • Procedures regarding closing outstanding probable violations (Yes= 4 points, No= 0 Points, NI=1-3 points) Comments: Yes. The procedures are contained in Section XV and XVI of the AOGC UNGS Inspection Guidelines. 2 Did the State follow compliance procedures (from discovery to resolution) and adequately document all probable violations, including what resolution or further course of action is needed to gain compliance? Chapter 5.1 • Were compliance actions sent to company officer or manager/board member if municipal/government system? • Document probable violations • Resolve probable violations • Routinely review progress of probable violations • ; and (Yes= 4 points, No= 0 Points, NI=1-3 points) Comments: Yes*4. Procedures are in place. The one letter of concern followed the procedures. 3 Did State within 30 days of the end of an inspection conduct a post-inspection briefing with the owner or operator of the UNGS facility inspected outlining any concerns identified during the inspection? (Yes= 2 points, No= 0 Points, NI=1 point) Comments: Yes. The 30-day guideline was met on the 2019 inspection. This is met with Verbal Exit Briefings at the conclusion of each inspection. 4 Did State within 90 days, to the extent practicable, provide the owner or operator with written preliminary findings of the inspection? (Yes= 2 points, No= 0 Points, NI=1 point) Comments: Yes. The letter of Concern was sent within 30 days. 5 Did the State issue compliance actions for all probable violations discovered? (Yes= 2 points, No= 0 Points, NI=1 point) Comments: Yes. It’s in the Procedures. There were no Probable Violations in 2019. The letter of Concern issued 7 concerns that the operator responded to. 6 Did compliance actions give reasonable due process to all parties? Including "show cause" hearing if necessary. (Yes= 2 points, No= 0 Points) Comments: Yes. It’s in the Procedures and Commission rules. There were no Probable Violations in 2019. 4 4 2 2 2 2#
AR UNGS Program Evaluation, 2019, page 87 Is the Program Manager familiar with State process for imposing civil penalties? (describe any actions taken) (Yes= 2 points, No= 0 Points, NI=1 point) Comments: Yes. The program manager is familiar with the state process for imposing civil penalties. However, there were no civil penalties issued in 2019. 8 Were civil penalties considered for repeat violations, violations which can’t be corrected by other means, or violations resulting in incidents? (Yes= 2 points, No= 0 Points, NI=1 point) Comments: Yes. The program manager is familiar with the state process for imposing civil penalties. There were no repeat violations or violations resulting in incidents or accidents in 2018. 9 Can the State demonstrate it is using their enforcement fining authority for safety violations? (Yes= 1 point, No= 0 Points, NI= .5 point) Comments: Yes. The AOGC did assess a civil penalty of $30,000 in 2019 for a pipeline violation. The civil penalty was collected in 2019 & 2020. 10 General Comments: Part D scored 21 of 21 points. 2 2 1 21#
AR UNGS Program Evaluation, 2019, page 9E – INCIDENT INVESTIGATIONS 1 Does the State have written procedures to address State actions in the event of an incident? (Yes= 2 points, No= 0 Points, NI=1 point) Comments: Yes. The AOGC incident/accident procedures are contained section XII of the AOGC UNGS Inspection Guidelines. 2 2 Does State have adequate mechanism to receive and respond to operator reports of incidents, including after-hours reports? (Yes= 2 points, No= 0 Points, NI=1 point) Comments: Yes. There is a 24-hour call in number for pipeline incidents which are routed to staff. 2 3 Did the State keep adequate records of Incident notifications received? (Yes= 2 points, No= 0 Points, NI=1 point) Comments: NA. There have been no UNGS incidents. Procedures are in Place, Section XII. NA 4 If onsite investigation was not made, did State obtain sufficient information from the operator and/or by other means to determine the facts to support the decision to not go on-site? Chapter 6 (Yes= 1 point, No= 0 Points, NI= .5 point) Comments: Yes. There were no reportable incidents in 2019. Procedures are in place. 1 5 Were all incidents investigated, thoroughly documented, and with conclusions and recommendations? • Observations and document review • Contributing Factors • Recommendations to prevent recurrences where appropriate (Yes= 3 points, No= 0 Points, NI=1-2 points) Comments: Yes. Procedures are in place. No incidents in 2019. 3 6 Did the State initiate compliance action for violations found during any incident investigation? (Yes= 1 point, No= 0 Points) Comments: Yes. Procedures are in place. No incidents in 2019. 1 7 Did the State assist the Region Office or Accident Investigation Division (AID) by taking appropriate follow-up actions related to the operator incident reports to ensure accuracy and final report has been received by PHMSA? (validate report data from operators concerning incidents and investigate discrepancies) Chapter 6 (Yes= 1 point, No= 0 Points, NI= .5 point) Comments: Yes. Procedures are in place. No incidents from PHMSA in 2019. 1 8 Does State share lessons learned from incidents with PHMSA? (Yes= 1 point, No= 0 Points) Comments: Yes. It is Policy to Share incident lessons during Regional NAPSR Meetings. There were no incidents in 2019. 1#
AR UNGS Program Evaluation, 2019, page 109 General Comments: Part E scored 11 of 11 points. Question E3 was NA. 13#
AR UNGS Program Evaluation, 2019, page 11F – DAMAGE PREVENTION 1 Did the State inspector verify UNGS operators are following their written procedures pertaining to notification of excavation, marking, positive response and the availability and use of the one call system? (API 1171 Section 11.10 Public Awareness and Damage Prevention) (Yes= 2 points, No= 0 Points, NI=1 Point) Comments: Yes. The operator, Black Hills, was reviewed and shown to be compliant with Damage Prevention 2 Did the State encourage and promote practices for reducing damages to all underground facilities to its regulated companies? (Common Ground Alliance Best Practices, support excavation damage prevention legislation, etc.) (Yes= 2 points, No= 0 Points, NI=1 Point) Comments: Yes. AOGC is active in the AR Pipeline Safety Seminar, and the Program Manager was Host and conducted the Seminar. 3 General Comments: Part F scored 4 of 4 points. No issues. 2 2 4#
AR UNGS Program Evaluation, 2019, page 12G – FIELD INSPECTIONS 1 Operator, Inspector, Location, Date and PHMSA Representative Comments: Black Hills Energy, OP ID 15359, Bryan Brown, virtual via MS TEAMS and ZOOM. 8/11/20, Patrick Gaume, PHMSA 2 Was the operator or operator's representative notified and/or given the opportunity to be present during inspection? (Yes= 1 point, No= 0 Points) Comments: Yes. Four operator employees participated in the inspection. 1 3 Did the inspector use an appropriate inspection form/checklist and was the form/checklist used as a guide for the inspection? (Yes= 2 points, No= 0 Points, NI=1 Point) Comments: Yes. D&A inspection. The Long Form was used in IA. 2 4 Did the inspector thoroughly document results of the inspection? (Yes= 2 points, No= 0 Points, NI=1 Point) Comments: Yes. All questions were addressed. 2 5 Did the inspector check to see if the operator had necessary equipment during inspection to conduct tasks viewed? (Yes= 1 point, No= 0 Points) Comments: Yes. Electronic connection and copies of files were made available. 1 6 Did the inspector adequately review the following during the field portion of the State Program Evaluation? • Procedures • Records • Field Activities/Facilities • Other (please comment) (Yes= 2 points, No= 0 Points, NI=1 Point) Comments: Yes. This was a D&A Long Form review. The Long Form addresses procedures. 2 7 Did the inspector have adequate knowledge of the UNGS safety program and regulations? (Evaluator will document reasons if unacceptable) (Yes= 2 points, No= 0 Points, NI=1 Point) Comments: Yes. Bryan conducted the Inspection in a Professional manner. 2 8 Did the inspector conduct an exit interview? (If inspection is not totally complete the interview should be based on areas covered during time of field evaluation) (Yes= 1 point, No= 0 Points) Comments: Yes. One concern; Operator needs to show procedures that an alcohol test is required before action is taken against an individual who appears intoxicated. 1#
AR UNGS Program Evaluation, 2019, page 139 During the exit interview, did the inspector identify probable violations found during the inspections? (if applicable) (Yes= 1 point, No= 0 Points) Comments: Yes. One concern; Operator needs to show procedures that an alcohol test is required before action is taken against an individual who appears intoxicated. 10 General Comments: • What did the inspector observe in the field? (Narrative description of field observations and how inspector performed) • Best Practices to Share with Other States - (Field - could be from operator visited or State inspector practices) • Other • Comments: part G scored 12 of 12 points. There is not a Field portion to a D&A test. Field Observation Areas Observed (check all that apply) 1 12#
AR UNGS Program Evaluation, 2019, page 14H - 60106 AGREEMENT STATE (if applicable) 1 Did the State use the current federal inspection form(s)? (Yes= 1 point, No= 0 Points, NI=.5 point) Comments: H1-7, NA, not a 60106 agreement program. 2 Are results documented demonstrating inspection units were reviewed in accordance with State inspection plan? (Yes= 1 point, No= 0 Points, NI=.5 point) Comments: H1-7, NA, not a 60106 agreement program. 3 Were any probable violations identified by State referred to PHMSA for compliance action? (NOTE: PHMSA representative has discretion to delete question or adjust points, as appropriate, based on number of probable violations; any change requires written explanation.) (Yes= 1 point, No= 0 Points, NI=.5 point) Comments: H1-7, NA, not a 60106 agreement program. 4 Did the State immediately report to PHMSA conditions which may pose an imminent safety hazard to the public or to the environment? (Yes= 1 point, No= 0 Points, NI=.5 point) Comments: H1-7, NA, not a 60106 agreement program. 5 Did the State give written notice to PHMSA within 60 days of all probable violations found? (Yes= 1 point, No= 0 Points, NI=.5 point) Comments: H1-7, NA, not a 60106 agreement program. 6 Did the State initially submit adequate documentation to support compliance action by PHMSA on probable violations? (Yes= 1 point, No= 0 Points, NI=.5 point) Comments: H1-7, NA, not a 60106 agreement program. 7 General Comments: H1-7, NA, not a 60106 agreement program. NA NA NA NA NA NA 6#
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