American Gas Association Virtual Operations Conference June 09 2020 Byron Coy PE Sr Technical Advisor USDOT PHMSA Summary Timeline 2 199220012004 Underground Storage Incidents amp Accidents ID: 1026519
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1. UndergroundNatural Gas StorageAmerican Gas AssociationVirtual Operations ConferenceJune 09, 2020Byron Coy PESr. Technical AdvisorUSDOT / PHMSA
2. Summary Timeline21992/2001/2004Underground Storage Incidents & AccidentsJuly/Sep - 2015API Recommended Practices : 1170 & 1171October - 2015Aliso Canyon IncidentJune - 2016PIPES Act, Section 12July - 2016Denver Public WorkshopDecember - 2016Interim Final Rule PublishedMay - 2017Revised IOGCC Regulatory GuidanceJune - 2017Stay of Enforcement (non-mandatory provisions)February - 2020Final Rule Published
3. CaliforniaInter UNGS: 0 Intra UNGS: 14CAORNVWAOregonInter UNGS: 0 Intra UNGS: 1IDMTMontanaInter UNGS: 1 Intra UNGS: 3WYUTCOAZNMTXOKOklahomaInter UNGS: 5 Intra UNGS: 8ARArkansasInter UNGS: 0 Intra UNGS: 2LouisianaInter UNGS: 13 Intra UNGS: 5NDSDLANEIAMOKSKansasInter UNGS: 11 Intra UNGS: 6MNMinnesotaInter UNGS: 0 Intra UNGS: 1WIMichiganInter UNGS: 19 Intra UNGS: 30MIIllinoisInter UNGS: 6 Intra UNGS: 22IL INIndianaInter UNGS: 4 Intra UNGS: 16OHOhioInter UNGS: 17 Intra UNGS: 3PAPennsylvaniaInter UNGS: 42 Intra UNGS: 9WVWest VirginiaInter UNGS: 29 Intra UNGS: 3VAVirginiaInter UNGS: 2 Intra UNGS: 0NYVT ME NHMARICTNJDEMD DCMarylandInter UNGS: 1 Intra UNGS: 0New YorkInter UNGS: 26 Intra UNGS: 0KentuckyInter UGSF: 6 Intra UGSF: 14KYTNTennesseeInter UGSF: 0 Intra UGSF: 1MSMississippiInter UGSF: 9 Intra UGSF: 2ALAlabamaInter UGSF: 1 Intra UGSF: 1TexasInter UNGS: 3 Intra UNGS: 29New MexicoInter UNGS: 1 Intra UNGS: 1NebraskaInter UNGS: 1 Intra UNGS: 0ColoradoInter UNGS: 6 Intra UNGS: 4WyomingInter UNGS: 5 Intra UNGS: 4UtahInter UNGS: 3 Intra UNGS: 0WashingtonInter UNGS: 1 Intra UNGS: 0IowaInter UNGS: 8 Intra UNGS: 0MissouriInter UNGS: 0 Intra UNGS: 1FLSCNCGAUnderground Natural Gas StoragePHMSA State Partners (CY2020)AlaskaInter UNGS:0 Intra UNGS: 4AKHIPRUNGS Intrastate 60105 CertificationUNGS Intrastate 60106 AgreementStates with no UNGS facilitiesIn Service Underground Natural Gas Storage (UNGS) counts as reported by operatorsto PHMSA on Annual Reports as of July 2019.Inspection agreement information updated April 2020.Number of UNGS Facilities (green text)Underground Natural Gas Storage Facilities in 31 States
4. Facilities & Their Wells4Number ofFacilities% ofFacilitiesNumber ofWells% ofWellsFacilities to beInspected by PHMSA 302 80 14,590 85Facilities to be Inspected by States 79 20 2,592 15 Totals 381 17,182
5. Federal Inspection ofFacilities and WellsCY’s 2018 - 2020FacilitiesWells2018 Inspections4121002019 Inspections5255002020 Inspections Planned702600Totals163102005
6. Federal Inspections in CY-2020
7. Total Inspection CountPlanned QuestionsCompletedQuestions 2018414,7974,7022019535,6105,604Total9410,40710,306Inspections & Question Sets7
8. Average SAT Percent per Inspection201881.9 %201982.9 %Inspection OutcomesSatisfactory Results8
9. Inspection YearAverage CONCERN Percent per Inspection201815.0 %201915.0 %Inspection OutcomesConcern Results9
10. Inspection YearAverage UNSAT Percent per Inspection20181.19 %20191.23 %Inspection OutcomesUnsatisfactory Results10
11. Start Year# Planned QuestionsPercentUNSAT’s20195213.520191067.520191067.520191066.620191066.62018885.7Individual Inspectionswith Highest ShortfallsStart Year# Planned QuestionsPercentCONCERN’s201913382.7201812181.0201812181.0201811140.5201810639.611
12. Common FindingsAnnular GasNot monitoring for the presence of annular gasNo established threshold pressure at which action must be takenNot evaluating each occurrence that exceeds operator-defined thresholdEmergency Response PlanDoes not account for all required eventsAccidental ReleaseNatural DisasterEquipment FailureThird Party DamageNo program for periodic effectiveness testing12
13. Common FindingsRisk Model does not include third party wells or P&A wellsPreventive &Mitigative measures are not identifiedConstruction Notifications have not been madeNo Blow-Out Contingency Plan13
14. Highest Percentage of Concern’s Top 5 Content AreasAnnular Gas MonitoringThreshold Limits & Exceedances EvaluationThreats & HazardsInteractions & Exclusions, Threat EvaluationThird Party WellsDocumenting data requests, evaluation of 3rd Party dataWell Integrity EvaluationsDocumenting mechanical integrity of each wellRisk AssessmentsPeriodic review & improvement cycle, effectiveness, applying results14
15. Highest Percentage of Unsat’s Top 5 Content AreasAnnular Gas MonitoringThreshold Limits, & Exceedance EvaluationBlowout Contingency PlansPlan in place, review & update processEmergency Plan, Periodic review for effectivenessWell Maintenance & InspectionsVisual inspections, master valve testing, valve maintenance, signageRisk AssessmentsReview of results, accurate representation of risk15
16. Compliance Actions in 2018/2019Proposed Notice of AmendmentsItems citing 192.12(e)Establish and follow written procedures for operations, maintenance, and emergency preparedness requirements16
17. Compliance Actions in 2018/2019Proposed Warning LettersItems citing 192.12(d)Operations, maintenance, integrity demonstration and verification, monitoring, threat and hazard identification, assessment, remediation, site security, emergency response and preparedness, and recordkeeping requirementsItems citing 192.12(e)Establish and follow written procedures for operations, maintenance, and emergencies… implementing the requirements17
18. Enforcement Actions01-01-18 thru 02-03-2020Enforcement InitiatedCasesProposedNOA ItemsProposed Warning Items201871942019142892020 YTD797Totals28562018
19. Construction NotificationsRegulation 191.22(c)(1)Construction of a new UNGSFMaintenance involving plugging or abandonment, or that requires a workover rig and costs $200,000 or more for an individual well, including its wellhead60 days before the event occurs (or commences)If 60-day notice is not feasible because of an emergency, notify PHMSA as soon as practicable19
20. NotificationsIntrastate188Interstate267Total455Construction NotificationsOct-2016 thru Apr-202020ActivitiesNew Well36Workover330P&A140Integrity77Total583Wells Impacted2438A notification can include multiple activities
21. Construction Notification Timing21After Work Started37When Work Started71-29 Days in Advance6130-59 Days in Advance7060-89 Days in Advance21690+ Days in Advance64191.22(c)(1)If 60-day notice is not feasible because of an emergency, notify PHMSA as soon as practicableNotation in records
22. Construction Notification Duration220 or Blank581 - 7 Days268 – 14 Days2615 – 29 Days4030 – 59 Days8560 – 179 Days103180+ Days117
23. Final RuleRestored Non-Mandatory Provisions for Recommended PracticesNarrowed Scope for Construction Notifications Roles and Responsibilities must be defined23
24. Final RuleMarch 13, 2024 : Complete the baseline risk assessments of all reservoirs/caverns, and 40% of wells/wellheadsMarch 13, 2027 : Complete baseline risk assessments on all its wells/wellheadsSeven year assessment intervalSalt Caverns must follow RP-1171 Risk Management, Section 8, as applicable24
25. 191.3, IncidentAn event that results in an emergency shutdown of an LNG facility or a UNGSFActivation of an emergency shutdown system for reasons other than an actual emergency within the facility does not constitute an incident25
26. 191.23(b)(5)Safety-Related Condition(b) A report is not required for any safety-related condition that -(5) Exists on an UNGSF, where a well or wellhead is isolated, allowing the reservoir or cavern and all other components of the facility to continue to operate normally and without pressure restriction.26
27. After the Final RuleRevised Inspection Question SetRevised FAQ’sReformed TQ Inspector Training ClassesWorkshopInitiation of Annual UGS Conference
28. Changes prompted by Final RuleFAQsIA QuestionsCurrent CountEdit or DeleteCreate NewCurrent CountEdit or DeleteCreate New191321141101921818446240010Preliminary Analysis
29. PHMSA : Web Linkshttp://www.phmsa.dot.govResources/Technical Resources/Underground NGKey DocumentsLocationsMajor IncidentsPictures & DiagramsState ParticipationTechnical Reportshttps://www.phmsa.dot.gov/forms/pipeline-formshttps://www.transportation.gov/regulations
30. Contact InformationByron Coy PESr. Technical AdvisorUSDOT / PHMSAbyron.coy@dot.gov609-771-7810