Nebraska State Fire Marshal Pipeline Safety Section ...

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NEBRASKA STATE FIRE MARSHAL – PIPELINE SAFETY DIVISION

11-06-000,Stro,20120829,SG,McCook(OM Standard)M SFM 70 Unit Records and Field Facilities of 7

Name of Operator: SourceGas UNIT #11-06-000 HQ Address: System/Unit Address: SourceGas 610 Central Avenue Kearney, NE 68847

Co. Official: Phone No.: Fax No.: Emergency Phone No.:

Doug Whitefoot - V.P. Record ID No.: Phone No.: Fax No.:

(303) 914-7498 (303) 763-3291 (800) 563-0012

Persons Interviewed Title Phone No. Lanna Machmuller Analyst - Senior Operations (308) 865- 6352 Steve Haag Division Manager - McCook Division (308) 345- 4761 Dick Potts Field Coordinator - McCook Division (308) 340- 7789 Company System Maps (Copies for Region Files):

YES

Unit Description: The Unit contains SourceGas customers in their Southwest area in Nebraska, including the communities of Bartley, Benkleman, Big Springs, Brule, Cambridge, Champion, Curtis, Danbury, Enders, Farnam, Grant, Hershey, Imperial, Indianola, McCook, Moorefield, Ogallala, Paxton, Roscoe, Sutherland, Venango Rural projects include Beale Ent, Bosselman, Carstens, Homestead, Nothnagel, River Rd, Sleepy Hollow, Silver Creek and Valley Grange

Portion of Unit Inspected:Field inspections of the following communities include check pipe/soil, Odorant, meter sets, business sections and vegetation around natural gas facilities. Cambridge, Bartley, Indianola, Danbury, Farnam,

Person conducting Inspection Mike Stromitis DSFM 8731

Dates: August 13-16, 20-22, 28 & 29, 2012



Does the Operator have any: Yes No 1. Gas storage facilities? 2. Gas compressor facilities? 3. Transmission pipeline? mile(s) 218 4. High Pressure Distribution pipeline? mile(s) 988 5. Low pressure Distribution pipeline? mile(s) None 6. Pre-1970 low frequency ERW pipeline? mile(s) None 7. Polyethylene (PE) pipeline? mile(s) 35 8. Polyvinyl Chloride (PVC) pipeline? mile(s) 95 9. Cast Iron pipeline? mile(s) None 10. Copper pipeline? mile(s) None 11. Bare pipeline? mile(s) 6 12. Cathodically protected steel pipeline? mile(s) 218 13. Cathodically unprotected steel pipeline? mile(s) None 14. Isolated short sections of piping? # None 15. Impressed current rectifiers? # 46 16. History of Internal Corrosion? 17. Another Operator’s pipeline(s) crossing or running parallel with pipeline? 18. Pressure Limiting and/or Regulating Stations? 114 # 5 stations include a standby regulator in addition to their operating regulator.

Pipeline construction activity planned or within past year? Location Length in miles or feet Year Bartley replaced and up-rated Elevator's line 600' 2012 Stage 1 in McCook replaced 24 blocks of main plus services.

11,234' PE 2011

Stage 2 in McCook replaced 60 blocks of main plus services.

20,700' PE & 672' - 6" Steel 2012

McCook also replaced 4" main in block #240 596' PE 2012 Stage 3 replacement in McCook 15,420 PE 2013

Comments:

Records inspection: August 13, 2012:

11-06-248,Stro,2012Aug13,SG,McC,Bartley(OM Standard) 11-06-312,Stro,2012Aug13,SG,McC,Benkleman(OM Standard) 11-06-410,Stro,2012Aug13,SG,McC,BigSprings(OM Standard) 11-06-411,Stro,2012Aug13,SG,McC,Brule(OM Standard) 11-06-254,Stro,2012Aug13,SG,McC,Cambridge(OM Standard)

August 14, 2012:

11-06-313,Stro,2012Aug14,SG,McC,Champion(OM Standard) 11-06-259,Stro,2012Aug14,SG,McC,Curtis(OM Standard) 11-06-260,Stro,2012Aug14,SG,McC,CurtisRegs(OM Standard) 11-06-314,Stro,2012Aug14,SG,McC,Danbury(OM Standard) 11-06-315,Stro,2012Aug14,SG,McC,Enders(OM Standard)



August 14, 2012 con’t:

11-06-264,Stro,2012Aug14,SG,McC,Farnam(OM Standard) 11-06-316,Stro,2012Aug14,SG,McC,Grant(OM Standard) 11-06-415,Stro,2012Aug14,SG,McC,Hershey(OM Standard) 11-06-317,Stro,2012Aug14,SG,McC,Imperial(OM Standard) 11-06-318,Stro,2012Aug14,SG,McC,Indianola(OM Standard) 11-06-320,Stro,2012Aug14,SG,McC,McCookTBS1(OM Standard) 11-06-320,Stro,2012Aug14,SG,McC,McCookTBS2(OM Standard) 11-06-322,Stro,2012Aug14,SG,McC,McCookRegs(OM Standard) 11-06-321,Stro,2012Aug14,SG,McC,Nothnagel(OM Standard) 11-06-275,Stro,2012Aug14,SG,McC,Moorefield(OM Standard) 11-06-419,Stro,2012Aug14,SG,McC,Ogallala-1(OM Standard) 11-06-420,Stro,2012Aug14,SG,McC,Ogallala-2(OM Standard) 11-06-421,Stro,2012Aug14,SG,McC,Ogallala-3(OM Standard) 11-06-421,Stro,2012Aug14,SG,McC,OgallalaAir(OM Standard) 11-06-422,Stro,2012Aug14,SG,McC,Paxton(OM Standard) 11-06-324,Stro,2012Aug14,SG,McC,RiverRd(OM Standard) 11-06-424,Stro,2012Aug14,SG,McC,Roscoe(OM Standard) 11-06-431,Stro,2012Aug14,SG,McC,Sutherland(OM Standard) 11-06-325,Stro,2012Aug14,SG,McC,ValleyGrange(OM Standard) 11-06-326,Stro,2012Aug14,SG,McC,Venango(OM Standard) August 15, 2012:

11-06-A-190-2517,Stro,2012Aug15,SG,McC,BealeEnt(OM Standard) 11-06-513,Stro,2012Aug15,SG,McC,Carstens(OM Standard) 11-06-513,Stro,2012Aug15,SG,McC,Homestead(OM Standard) 11-06-A-200-8020,Stro,2012Aug15,SG,McC,Bosselman(OM Standard) 11-06-533-T,Stro,2012Aug15,SG,McC,A-200-0040(OM Standard) 11-06-533-T,Stro,2012Aug15,SG,McC,B-200-0040(OM Standard) 11-06-566-T,Stro,2012Aug15,SG,McC,C-200-0050(OM Standard) 11-06-567-T,Stro,2012Aug15,SG,McC,D-200-0060(OM Standard) August 16, 2012:

11-06-254,Stro,2012Aug16,SG,McC,Cambridge(OM Standard)M 11-06-248,Stro,2012Aug16,SG,McC,Bartley(OM Standard)M 11-06-318,Stro,2012Aug16,SG,McC,Indianola(OM Standard)M 11-06-314,Stro,2012Aug16,SG,McC,Danbury(OM Standard)M August 20, 2012:

11-06-264,Stro,2012Aug20,SG,McC,Farnam(OM Standard)M 11-06-275,Stro,2012Aug20,SG,McC,Moorefield(OM Standard)M 11-06-259,Stro,2012Aug20,SG,McC,Curtis(OM Standard)M 11-06-260,Stro,2012Aug20,SG,McC,CurtisRegs(OM Standard)M 11-06-415,Stro,2012Aug20,SG,McC,Hershey(OM Standard)M



August 21, 2012:

11-06-431,Stro,2012Aug21,SG,McC,Sutherland(OM Standard)M 11-06-422,Stro,2012Aug21,SG,McC,Paxton(OM Standard)M 11-06-424,Stro,2012Aug21,SG,McC,Roscoe(OM Standard)M 11-06-410,Stro,2012Aug21,SG,McC,BigSprings(OM Standard)M 11-06-A-200-8020,Stro,2012Aug21,SG,McC,Bosselman(OM Standard)M 11-06-411,Stro,2012Aug21,SG,McC,Brule(OM Standard)M 11-06-A-190-2517,Stro,2012Aug21,SG,McC,BealeEnt(OM Standard)M

August 22, 2012:

11-06-421,Stro,2012Aug22,SG,McC,OgallalaAir(OM Standard)M 11-06-419,Stro,2012Aug22,SG,McC,Ogallala-1(OM Standard)M 11-06-420,Stro,2012Aug22,SG,McC,Ogallala-2(OM Standard)M 11-06-421,Stro,2012Aug22,SG,McC,Ogallala-3(OM Standard)M 11-06-326,Stro,2012Aug22,SG,McC,Venango(OM Standard)M 11-06-316,Stro,2012Aug22,SG,McC,Grant(OM Standard)M

August 28, 2012:

11-06-C-200-2564,Stromitis,2012Aug28,SG,McC,ImperialERural(OM Standard) 11-06-317,Stro,2012Aug28,SG,McC,Imperial(OM Standard)M 11-06-313,Stro,2012Aug28,SG,McC,Champion(OM Standard)M 11-06-315,Stro,2012Aug28,SG,McC,Enders(OM Standard)M 11-06-312,Stro,2012Aug28,SG,McC,Benkleman(OM Standard)M

August 29, 2012:

11-06-320,Stro,2012Aug29,SG,McC,McCookTBS2(OM Standard)M 11-06-320,Stro,2012Aug29,SG,McC,McCookTBS1(OM Standard)M 11-06-322,Stro,2012Aug29,SG,McC,McCookRegs(OM Standard)M 11-06-324,Stro,2012Aug29,SG,McC,RiverRd(OM Standard)M 11-06-325,Stro,2012Aug29,SG,McC,ValleyGrange(OM Standard)M 11-06-321,Stro,2012Aug29,SG,McC,Nothnagel(OM Standard)M 11-06-323,Stro,2012Aug29,SG,McC,RepValley(OM Standard)M Code reference S –Satisfactory U – Unsatisfactory NA – Not Applicable NC – Not Checked S U NA NC

OPERATIONS and MAINTENANCE RECORDS S U N/A N/C

191.11 Annual Report (Form 7100.1-1 191.17 Annual Report – transmission lines (Form 7100.2-1) .16 Customer Notification (verification – 90 days – and elements) .517 (a) Pressure Testing (operates at or above 100 psig) – useful life of pipeline

(b) Pressure Testing (operates below 100 psig, service lines, PE) – 5 years .603(b) .605(a)Procedural Manual Review – O & M (1 per yr/15 months)

.605(c) Abnormal Operations – transmission lines

.605(b)(3) System Maps .709 .609 Class Location Study (If Applicable)



Code reference S –Satisfactory U – Unsatisfactory NA – Not Applicable NC – Not Checked S U NA NC

Comments: Abnormal Operating conditions for transmission mostly is subject to interstate transmission service. Class study SourceGas territory has stayed pretty much un impacted. Although they are aware of any item that would change a class and has procedures to make change if required. SourceGas has no unprotected distribution lines, although a number of yard line are not protected which SG does do 3 year surveys. SourceGas has no bare unprotected pipe, on TOG, SG cathodically protects all piping. SourceGas does not have any vaults anywhere in Nebraska. SourceGas does not have any caulked bell and spigot joint repairs. I did not examine any of SourceGas NDT records.

.614 Damage Prevention (miscellaneous) .603(b) .615(c) Liaison Program with Public Officials

.616 Public Education

OPERATIONS and MAINTENANCE RECORDS S U N/A N/C

.709 .619 Maximum Allowable Operating Pressure (MAOP)

.625 Odorization of Gas

.705 Patrolling - Transmission .603(b) .721(b)(1) Patrolling Business District (4 per yr/4½ months)

.721(b)(2) Patrolling Outside Business District (2 per yr/7½ months)

.723(b)(1) Leakage Survey – business District (1 per yr/15 months)

.723(b)(2) Leakage Survey

▪ Outside Business District (5 years)

▪ Cathodically unprotected distribution lines (3 years)

▪ Bare unprotected steel under hard surface (annual) .709 Repair: Pipe (Pipeline Life); Other than Pipe (5 years) .603b/.727g .727 Abandoned Pipelines; Underwater Facility Reports .603(b)/.70 .739 Pressure Limiting and Regulating Stations

(1 per yr/15 months)

.743 Pressure Limiting and Regulator Stations / Capacity review (1 per yr/15 months)

.709 .745 Valve Maintenance Transmission Lines (1 per yr/15 months)

.603(b) .747 Valve Maintenance Distribution Lines (1 per yr/15 months)

.603(b)/.70 .749 Vault Maintenance (200 cubic feet)(1 per yr/15 months)

.603(b) .755 Caulked Bell and Spigot Joint Repair

.225(b) Welding – Procedure

.227/.229 Welding – Welder Qualification

.243(b)(2) NDT – NDT Personnel Qualification .709 .243(f) NDT Records (Pipeline Life)



Code reference S –Satisfactory U – Unsatisfactory NA – Not Applicable NC – Not Check S U NA NC

CORROSION CONTROL RECORDS S U N/A N/C

.491 .491(a) Maps or Records .459 Examination of Buried Pipe when Exposed .465(a) Annual Pipe-to-soil Monitoring (1 per yr/15 months) .465(b) Rectifier Monitoring (6 per yr/2½ months) .465(c) Interference Bond Monitoring – Critical (6 per yr/2½ months) Interference Bond Monitoring – Noncritical (1 per yr/15 months) .465(d) Prompt Remedial Actions .465(e) Unprotected Pipeline Surveys, CP active corrosion areas

(1 per 3 cal yr/39 months)

.467 Electrical Isolation (Including Casings)

.471 Test Lead Maintenance

.473 Interference Currents

.475(a) Internal Corrosion; Corrosive Gas Investigation

.475(b) Internal Corrosion; Internal Surface Inspection; Pipe Replacement

.477 Internal Corrosion Control Coupon Monitoring (2 per yr/7½ months)

.481 Atmospheric Corrosion Control Monitoring (1 per 3 cal yr/39 months onshore)

.483 Remedial Measures: Replaced or repaired pipe; coated and protected

.485 Transmission Remedial Measures: Corrosion evaluation and actions

Comments:

PIPELINE INSPECTION (Field) S U N/A N/C

.179 Valve Protection from Tampering or Damage

.463 Cathodic Protection

.465 Rectifiers

.479 Pipeline Components Exposed to the Atmosphere

.605 Knowledge of Operating Personnel

.612(b) Water Crossings (If Applicable)

.707 ROW Markers, Road and Railroad Crossings

.719 Pre-pressure Tested Pipe (Markings and Inventory)

.739 Pressure Limiting and Regulating Devices (Mechanical)

.743 Pressure Limiting and Regulating Devices (Capacities)

.745 Valve Maintenance

.751 Warning Signs

.801- 809

Operator Qualification Questions – See Attachment 3

Comments:

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NEBRASKA STATE FIRE MARSHAL - PIPELINE SAFETY SECTION FOLLOW-UP INSPECTION:

SFM Form 11 Compliance Follow-up Inspection 2012

20120904-N Name of Operator: SourceGas Location: McCook Operator Address: Source Gas LLC 610 Central Avenue Kearney, NE 68847

Phone Number: 308.865.6352 Fax Number: 308.243.3732 Emergency: 1 800 563 0012 Federal ID: 10030

Persons Interviewed Title Phone No. Joshua Schmeitz Compliance Coordinator 308-865-6323 Shaun Keeshan Compliance Coordinator 308-223-0626 Lana Machmuller Public Awareness Coordinator 308.440.0973 Person conducting Inspection: DSFM Arnie Bates

Date: December

Description: MAOP Exceedance Code 192. 619 Date of Letter 09/04/2012Type: Violation Recognize AOC Code 192. 803 Date of Letter 09/04/12 Type: Violation Portion of Unit Inspected: Documents pertaining to 20120904-N and subsequint actions of the operator.

FINDINGS: Actions taken to address the MAOP exceedance have corrected that specific issue. Re-qualification of individual has addressed #2 concern within the NOPV. CONCLUSION: Actions taken by operator have addressed the probable violations. I will close action upon this NOPV. BODY of Report: On August 29, 2012, a field inspection of SourceGas facilities located in the community of McCook was conducted by Deputy Mike Stromitis and SourceGas Field Coordinator, Dick Potts. During the inspection at a SourceGas facility identified as Airport Rural Regulator Station 5-1, the pressure was found to be operating at 11.2 psig; the Maximum Allowable Operating Pressure (MAOP) is 10 psig. Mr. Stromitis then issued a Notice of Probable Violation (20120904-N) in which he cited two probable violations. NOPV #1; the outlet of the regulator station has an MAOP of 10 PSIG and was found exceeding the MAOP by 1.2 psig. The indication on recording charts showed the MAOP had been exceeded for over four months. This is a violation of 192.619(a) (4). NOPV #2; Personnel changing the monthly recording charts did not recognize the regulator station was operating higher than the MAOP allowed which created an Abnormal Operating condition. Subpart N, Qualification of Pipeline Personnel, 49 CFR 192.803, requires personnel as part of their Qualification to recognize when an abnormal operating condition exists. §192.803 Definitions SourceGas responded to the NOPV on 09/25/12 NOPV #1; SG has repaired and tested the regulator to ensure that the operating pressure will not exceed a MAOP of 10 psig.

NEBRASKA STATE FIRE MARSHAL - PIPELINE SAFETY SECTION FOLLOW-UP INSPECTION:

SFM Form 11 Compliance Follow-up Inspection 2012

NOPV#2: SG revoked the Abnormal Operating Condition (AOC) Operator Qualification (OQ) certification for personnel involved with operating pressure recording chart maintenance. Training and requalification of personnel was completed on August 31, 2012. Follow-up: Discussion between this deputy and SourceGas representatives on December 8, 2015 addressed this specific issue. The pipeline segment did operate above the designated MAOP. The MAOP was established under 192.619 (3)(c) the 5 year window clause. To address the malfunction, the operator change the regulating equipment and set pressures to operate within requirements (8psig). Since the date of reair, the regulating equipment has been inspected on an annual basis. Most recent inspection date 04/27/15, no additional issues have been experience for this pressure regulating station. Addressing NOPV#2 Actions taken by the operator are sufficient for prevention of re-occurance and meet requirements of Operator's OQ Plan.

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