Docket No. Caption 9748 Inquiry into the Fairlure of Atmos Energy Corp., Mid-Tex Division toComply with Safety Standards 2/26/2008 Stipulation, Agreed Settlement and Consent Order ^^, Roll No. Blip No. GUD N 748: Inquiiy into th. ailure of Atmos nergy Corp., Mid-Tex Division to Comply with Safety Standards. MICHAEL L. WILLIAMS, CHiIIRMAN LINDIL/C-V^WLER, JR., GENERAL COUNSEL VICTOR G. CARRILLO, COMMISSIONER ELIZABETH A. JONES, COMMISSIONER LL V¢//y . .'^' ^, `f WILLIAMS, DIRECTOR ^ADI`DAi/DAIT'CC/^TJn]^I RAILROAD COMMISSION OFFICE OF GENERAL COUNSkI November 20, 2007 Atmos Energy Corp., Mid-Tex Div. P.O. Box 223705 Dallas, TX 75222-3705 Robert W. Best, COB/Pres/CEO Atmos Energy Corp., Mid-Tex Div. 5430 LBJ Frwy, Ste 1800 Dallas, TX 75240 Corporation Service Company, R.A.. for Atmos Energy Corp., Mid-Tex Div. 701 Brazos St., Ste 1050 Austin, TX 78701 John P. Reddy, Sr VP/CFO Atmos Energy Corp., Mid-Tex Div. 5430 LBJ Frwy, Ste 1800 Dallas, TX 75240 Kim R. Cocklin, Sr VP/Utility Op. Atmos Energy Corp., Mid-Tex Div. 5430 LBJ Frwy, Ste 1800 Dallas, TX 75240 RE: RAILROAD COMMISSION OF TEXAS GAS UTILITIES DOCKET NO. 07-9748: ENFORCEMENT ACTION AGAINST ATMOS ENERGY CORP., MID-TEX DIVISION (OPERATOR NO. 036589/ID NO. 6776) FOR VIOLATION OF COMMISSION PIPELINE SAFETY RULE 49 CFR §192.703 AT IRVING UNIT 3405 OF SYSTEM 610304, IRVING, DALLAS COUNTY, TEXAS Information on file in our offices indicates that Atmos Energy Corp., Mid-Tex Division, has violated provisions of the Railroad Commission Pipeline Safety Rules, the Texas Natural Resources Code, or the Texas Water Code, as set forth more fully in the attached Original Complaint. This letter is notice of the captioned docket pending against Atmos Energy Corp., Mid-Tex Division. According to Section 1.49 of the Commission's General Rules of Practice and Procedure [Tex. R.R. Comm'n, 16 TEX. ADMIN. CODE § 1.49] which was adopted effective April 2, 1996, you may, within 30 days of the date of service of this notice, file an answer or request a hearing to contest the allegations of the Original Complaint. The date of service of this notice is computed under Statewide Rule 1(a)(8) [Tex. R.R. Comm'n, 16 TEX. ADMIN. CODE § 3.1(a)(8), amended effective May 22, 2000. You may hire an attorney or other representative or choose to appear on, your own behalf. The Railroad Commission Enforcement Section docket file contains records and inspection reports which will be offered into evidence in this case. The file is available for inspection at any time during business hours. To arrange for inspection or copying of this file, please call Bill Drury, at (512) 463-6858. Under § 81.0531, Texas Natural, Resources Code, the Commission may assess an administrative penalty of up to $10,000.00 per day per violation. Finally, referral of the matter to the Attorney General for collection and enforcement could result in additional civil penalties, court costs, and attorneys' fees being adjudged against you. 1701 NORTH CONGRESS AvENUE TDD 800-735-2989 ORTDY512-463-7284 * POST OFFICE Box 12967 * AUSTIN, TExns 78711-2967 AN EQUAL OPPORTUNITY EMPLOYER * PHONE: 512/463-6762 FAx: 512/463-6989 http://www.rrc.state.tx.us Notice of Opportunity for Hearing, Gas Utilities Docket No. 07-9748, Page 2 UNDER TEXAS NATURAL RESOURCES CODE SECTION 91.114, AS AMENDED JUNE 20, 2003, THE FAILURE TO PAY PENALTIES OR REIMBURSEMENT ASSESSED IN A COMMISSION FINAL ORDER, OR TO COMPLY WITH THE REMEDIAL DIRECTIVES IN THE ORDER, SHALL REQUIRE THE COMMISSION TO REFUSE PERMIT APPLICATIONS TENDERED BY ATMOS ENERGY CORP., MID-TEX DIVISION AND PERSONS WHO OWN POSITIONS OF OWNERSHIP OR CONTROL IN ATMOS ENERGY CORP., MID-TEX DIVISION, AND SHALL ALSO RESULT IN REVOCATION OF ATMOS ENERGY CORP., MID-TEX DIVISION'S AND SUCH PERSONS' RIGHT TO ENGAGE IN THE GAS DISTRIBUTION BUSINESS IN THE STATE OF TEXAS. OFFER OF SETTLEMENT If you correct the violations set forth in the Original Comppdint and pay an administrative penalty of $26,000.00 ($1,000.00 plus recldsa enhancement of $25,000 by December 21,2007, I will recommend that the Commission settle this case with an agreed settlement order. Checks should be made out to the "Railroad Commission of Texas" and should include the docket number on the check. When the Commission considers my recommendation, it may either accept it, reject it, or instruct me to seek a different administrative penalty. IF YOU DO NOT SETTLE THIS CASE, FILE AN ANSWER TO THE ORIGINAL COMPLAINT, REQUEST A HEARING, OR APPEAR AT THE HEARING SET, A DEFAULT FINAL ORDER MAY BE ISSUED AGAINST YOU WITHOUT FURTHER NOTICE. Sincerely, Susab German, Stdff Attorney Office of General Counsel - Enforcement Railroad Commission of Texas (512) 463-8589 CERTIFICATE OF SERVICE I hereby certify that I have served a copy of this Notice of Opportunity for Hearing, together with a copy of the Original Complaint, in Gas Utilities Docket No. 07-9748, on the persons named below by depositing same in the United States Mail, Certified Return Receipt Requested postage fully prepaid, on this the 20`h day of November, 2007, properly addressed as follows: Atmos Energy Corp., Mid-Tex Div. P.O. Box 223705 Dallas, TX 75222-3705 Robert W. Best, COB/Pres/CEO Atmos Energy Corp., Mid-Tex Div. 5430 LBJ Frwy, Ste. 1800 CERT. MAIL No. 7006 0810 0000 4587 7270 Dallas, TX 75240 CERT. MAIL No. 7006 0810 0000 4587 7300 Corporation Service Company, R.A.for Atmos Energy Corp., Mid-Tex Div. 701 Brazos St., Ste 1050 Austin, TX 78701 CERT. MAIL No. 7006 0810 0000 4587 7287 Kim R. Cocklin, Sr VP/Utility Op. Atmos Energy Corp., Mid-Tex Div. 5430 LBJ Frwy, Ste 1800 John P. Reddy, Sr VP/CFO Atmos Energy Corp., Mid-Tex Div. 5430 LBJ Frwy, Ste 1800 Dallas, TX 75240 CERT. MAIL No. 7006 0810 0000 4587 7331 Dallas, TX 75240 CERT. MAIL NO. 7006 0810 0000 4587 7294 I hereby certify that I have served a copy of this Notice of Opportunity for Hearing, together with a copy of the Original Complaint in Gas Utilities Docket No, 07-9748, on the persons named below by depositing same in the United States Mail, first-class postage fully prepaid, on this the 20`h day of November, 2007, properly addressed as follows: Atmos Energy Corp., Mid-Tex Div P.O. Box 223705 Dallas, TX 75222-3705 Corporation Service Company, R.A.for Atmos. Energy Corp., Mid-Tex Div, 701 Brazos St., Ste 1050 Austin, TX 78701 Robert W. Best, COB/Pres/CEO Atmos Energy Corp., Mid-Tex Div. 5430 LBJ Freeway, Ste 1800 Dallas, TX 75240 John P. Reddy, Sr VP/CFO Atmos Energy Corp., Mid-Tex Div. 5430 LBJ Freeway, Ste 1800 Dallas, TX 75240 Kim R. Cocklin, Sr VP/Utility Op. Atmos Energy Corp., Mid-Tex Div. 5430 LBJ Frwy, Ste 1800 Dallas, TX 75240 Mary McDaniel - Austin Angie Sambrano - Austin Bill Drury, Legal Assistant Office of General Counsel - Enforcement Railroad Commission of Texas (512) 463-6858 RAILROAD COMMISSION OF TE S`^ y^ GAS UTILITIES DOCKET NO. 07-9748: ENFORCEMET^'I;^,ACTI"^ ^ AINST ATMOS ENERGY CORP., MID-TEX DIVISION (OPERATOI'^Q: ^6589/IDrW:0. 6776) FOR VIOLATION OF COMMISSION PIPELINE SAFETY RU^^^^.{^^ £ 19&03 AT IRVING UNIT 3405 OF SYSTEM 610304, IRVING, DALLAS GO.^' ',: ^1 EXAS ORIGINAL COMPLAINT Comes now the Railroad Commission of Texas ("the Commission") and files this Original Complaint charging Atmos Energy Corp., Mid-Tex Division (Operator No. 036589/ID No. 6776)) ("Respondent") with violation of Commission Pipeline Safety Rule 49 CFR § 192.703, [adopted by reference through 16 TAC §8.1], at its Irving Unit 3405 of Irving System 610304, natural gas distribution system in Dallas County, Texas, as set forth more fully below. JURISDICTION 1. The Commission has jurisdiction over this Respondent and these matters pursuant to TEX. UTIL CODE ANN. § 121.201 et seq. and § 121.206 et seq., and pursuant to 16 TEX. ADMIN. CODE §8.1 et seq. Respondent is a "gas utility" as that term is defined in § 121.001 TEX. UTIL CODE and by 16 TEX. ADMIN. CODE §8.1 et seq. For the purposes of Chapter 121, Subchapter E of the Texas Utility Code, Atmos Energy Corp., Mid-Tex Division, is a person as that term is defined by 16 TEX. ADMIN. CODE §8.5(21). The Irving Unit 3405 of Irving System 610304, is a gas pipeline facility/distribution facility as defined by 16 TEX. ADMIN. CODE §8.5(23). The Irving Unit 3405 of Irving System 610304, is the gas company of Atmos Energy Corp.; Mid-Tex Division, subject to 16 TEX. ADMIN. CODE §8.5(11). Respondent is the person who is responsible for the maintenance or operation of a gas distribution facility within the State of Texas, or of the transportation of gas within the State of Texas, regulated pursuant to TEX. UTIL. CODE ANN. § 121.206, TEX. UTIL. CODE ANN. § 121.201(a)(1) and 16 TEX. ADMIN. CODE §8.1 (Tex. R.R. Comm'n, General Applicability and Standards). Respondent is not a gas pipeline facility or engaged in the transportation of gas subject to exclusive federal jurisdiction under the Natural Gas Pipeline Safety Act, 49 United States Code Annotated §§60101 et seq. As such, the Respondent is responsible for compliance with applicable statutes and Commission Statewide Pipeline Safety Rules. 2. The notice of hearing required under Commission Rule §1.45 [16 TEX. ADMIN. CODE §1.45], may be served on Respondent at the addresses reported most recently to the Commission and the Secretary of State of Texas by the Respondent, (TEX.NAT. RES. CODE ANN. § 91.142), by Regular and by Certified Mail, Return Receipt Requested, addressed to: Atmos Energy Corp., Mid-Tex Division, P.O. Box 223705, Dallas, TX 75222-3705. Notice may be served by regular and Certified Mail on the Registered Agent for Respondent, addressed to Corporation Service Company, Registered Agent for Atmos Energy Corp., Mid-Tex Division, 701 Brazos St., Ste 1050, Austin, TX 78701. Notice may also be served on the persons reported to the Commission and Secretary of State of Texas, to be its Chairman of the Board, President and CEO: Robert W. Best, Atmos Energy Corp., Mid-Tex Division, 5430 LBJ Freeway, Ste 1800, Dallas, TX 75240; its Senior Vice President and CFO: John P. Reddy, Atmos Energy Corp., Mid-Tex Division, 5430 LBJ Freeway, Ste 1800, Dallas, TX 75240; and its Senior Vice President, Utility Operations: Kim R. Cocklin, Atmos Energy Corp., Mid-Tex Division, 5430 LBJ Freeway, Ste 1800, Dallas, TX 75240. PIPELINE SAFETY RULE 49 CFR §192.703 1. Commission Pipeline Safety Rule § 192.703 [adopted by reference through 16 TAC §8.1], provides that: "(a) No person may operate a segment of pipeline, unless it is maintained in accordance with this subpart. (b) Each segment of pipeline that becomes unsafe must be replaced, repaired, or removed from service. (c) Hazardous leaks must be repaired promptly." 2. On January 15-February 6, 2007, the Pipeline Safety Section of the Commission's Gas Services Division conducted Safety Evaluation No. 2007-0385_D on the Irving Unit 3405 gas distribution system (System ID No. 610304), owned and operated by Atmos Energy Corp., Mid-Tex Division. On March 28, 2007, the Commission issued its Final Report, Accident Investigation Report No. 07-0385. This report describes an explosion and fire that occurred at about 10:00 A.M. on January 15, 2007, at 2824 W. Rochelle Road, a residence in Irving, Texas, when a leak at the service tap to 2824 W. Rochelle Road, allowed gas to migrate through the soil and sewer system until it found a source of ignition. There were no fatalities or injuries, although ten (10) people were evacuated from affected residences; property damage, in the amount of approximately $20,000, was limited to one section of the home at 2824 W. Rochelle Road. The investigation showed the leak was originally found September 30, 2006, and was monitored once every 30 days thereafter. On October 24, 2006, a 10% gas concentration was found; on November 20, 2006, it was 61%; on December 15 and December 18, 2006, a 15% gas concentration was found. 3. The Commission's Report No. 07-0385, also showed bar testing of the main and service line was conducted by Atmos personnel, and gas migration was found along the main and service line in front of 2824 W. Rochelle Road. Also, 9% gas concentrations were detected in the sewer cleanout of 2824 W. Rochelle Road, located 2' from the meter set, and 10% gas concentrations were detected in the sewer vent on the roof of 2820 W. Rochelle Road. Excavation revealed an ell leaking on the welded service tap. Excavation also revealed a corrosion leak on the main, about 30' west of the service tap. An open leak (Ref. Leak No. 367515) existed for 2824 W. Rochelle Road. 4. Records obtained from Atmos Energy Corp.; indicate that the Irving distribution system has 3 maximum allowable operating pressures (MAOP), including 60psig, 55psig, and low pressure. The MAOP of the area serving the subject residence, allows 55psig; the actual operating pressure on January 15, 2007, was 47psig at 9:45 A.M. The main supplying the residence is a 4" coated steel line. No records are available to verify installation date of the main. The service line supplying the residence is a 1" bare steel service line, installed April 17, 1960. The last inspection date in Atmos' records was February 28,2006. (The leak detected on September 30, 2006, was a result of customer call on that date at 12:03 A.M.) 5. By failing to properly monitor the leak detected September 30, 2006, (to monitor the leak, a bar hole test must be performed every 5' in all directions over the main and service line until readings are zero percent), by failing to upgrade the leak from Grade 2 to Grade 1, when the periodic testing showed a changing pattern of gas migration, by failing to perform leak monitoring procedures that would have revealed the corrosion leak on the main, thirty (30') feet west of the service tap, and by failing to properly follow plans, procedures and/or programs required by Commission Gas Safety Rules, Respondent violated Commission Pipeline Safety Rule 49 CFR §192.703(c) [adopted by reference through 16 TAC §8.1] at its Irving Unit 3405 at Irving System 610304, Dallas County, Texas. Respondent's violation of Commission Pipeline Safety Rule 49 CFR § 192.703(c) [adopted by reference through 16 TAC §8.1], is serious and a hazard to the public health and safety. PUBLIC HEALTH AND SAFETY Respondent's failure to comply with TEX. UTIL. CODE ANN. § 121.201 or safety standards or rules relating to the distribution of gas and gas pipeline facilities adopted under that section, is serious and constitutes a hazard to the health or safety of the public. PREVIOUS VIOLATIONS BY RESPONDENT The Respondent charged with the violation herein recited has no Final Orders against it for violation of Commission rules. GOOD FAITH Respondent has acted in bad faith because it failed to timely correct Commission pipeline safety rule violation and failed to adequately explain its inaction to the Commission. PRAYER WHEREFORE, PREMISES CONSIDERED, the Commission Gas Services Pipeline Safety Division, prays that notice be given and a hearing be held to consider the above-referenced violation, and requests the Commission to thereafter enter an order: 1. assessing Respondent an administrative penalty of $26,000.00 ($1,000 for violation of Pipeline Safety Rule 49 CFR § 192.703(c) [adopted by reference through 16 TAC §8.1]; plus $25,000 for Re " ess Enhancemen, or such other amount as may be established by the evidence; , 2. directing Respondent to place the subject pipeline into compliance with all Commission Pipeline Safety Rules; and 3. ordering any other relief to which, under the pleadings and the evidence, the Enforcement Section may show itself entitled. Respectfully submitted, &h- ^ Susan German, St ff Attorney Office of General Counsel RAILROAD COMMISSION OF TEXAS State Bar No. 17424700 Telephone No. (512) 463-8589 FAX No. (512) 463-6989 P. O. Box 12967 Austin, Texas 78711-2967 Dated: November 20, 2007 cc: Mary McDaniel - Austin Angie Sambrano - Austin ^ Pipeline Safety Docket Referral DocketNo: 07-9748 Operator: ATMOS ENERGY CORP., MID-TEX DIV. Region Referral Date: Attorney: Operator Type: Gas Distribution Supporting Documents d Safety Eval ❑ No: ❑ Prev Safety Eval No: ❑ Accident/Special No: ❑ POC Received 2007-0385 Date POC Recd: Num Of POC's Recd: Date: 0 Status ................................................................................................................................................................................................................................... ❑ J Referred To Legal 9/5/2007 ❑ Hearing ❑ Legal Negotiating ❑ Agreed Order ❑ Complaint Filed ❑ PFD ❑ Dismissal Comments: ❑ Non-Monetary Penalty: Total Violation Penalty: $1,000.00 Total Enhanced Penalty: $25,000.00 Total Docket Penalty: $26,000.00 Page 1 of 2 Penalty Amount Collected: Form PS-53 $0.00 9/4/2007 0 I DocketNo: 07-9748 Operator: ATMOS ENERGY CORP., MID-TEX DIV. 192-703-002:#. .N .................. ::::::A hazardous leak( s) at the li se^^. t d site(s)was not repaired promptly. . ..... .. . ...........:: : : :: ::::::::::::::::::::: . : : :.................... Re::'::e::::•::::9 .:::::.............................................................................. : : : :::::::::::::: :........................................................................... .^....^ : : ^ ^ : : : : : . :: quirem nt: 4 CFR 192 . 703(c) .... ...... ....>:^<' .... ... . . ...... . ..... ............. .. ::::#:::;^ <::z: # : ';:•;:•: , . . ...... . ,...,...... :: » : The listed ope n leak ... wasfou ^^C3':'•I^Otr^x•:;::.. found on 9/30/05 ;;•::.; andclassifiedasaGrade2leak.Theleakwasmonitored 10/24/06 - 10% gas detected, 11/20/06 - 61 % gas detected. 12/15/06 -15°k gas detected, and 12/18/06 -15°h gas detected. Gas from this leak migrated through the soil and into the sewer ;.: system and found an ignition source. The one area of concern would be the open Leak No. 394541 at 2824 W. Rochelle incident site. Leak monitoring procedures come into question. To monitor the leak, a bar hole test must be performed every five feet in all directions over the main and service line until readings are zero percent. The gas migration pattern changed and the leak was never upgraded to a Grade I leak, until after the incident occurred. Also if leak monitoring procedures were performed the corrosion leak on the main 30 feet west of the service tap could have been discovered prior to the incident. Questions also arise to the leak monitor dates of 12/15/06 with 15% gas concentrations detected and then monitored again three days later on 12/18/06 with 15% gas concentrations '• detected. If the leak had not been monitored on 12/18/06, then the leak would have been due to monitor on or before 1/15/07, the date of the incident. Atmos supervision could not explain why the leak monitor technician would monitor the eak and return three days later to monitor the leak again. The scheduling of the leak monitor process is left up the technician performing the leak monitors, and ::;:me ieaK rorm aoes not contain a comment section tor these actions. 1/15/2007 1 /16/2007 $25,000.00 .... ..... ......... End Of Referral Regional Supervisor Page 2 of 2 Form PS-53 9/4/2007 • TO BE FILLED OUT BY MARY Docket # Please circle Enhancement Reason: . Impacted Residential/Public Area Hazardous Material Release ^C^ 1e Incident/Accid - en : (, Rep ortab: Exceeding Pressure Control Limits Time Out of Compliance Affected Area in Excess of 100 Square Ft. Reckless Conduct of Operator Intentional Conduct of Operator Straight Penalty Not Per Day Rated xaiiTOaa uommission ot '1'e* Figure: 16 TAC §8.245(i) Page 1 of 4 (-k Tha* q744 Table 5. Penalty calculation worksheet. Typical penalties from Table 1 1. 16 TAC §3.70 - Pipeline Permits Required $1,000 $ 2. 16 TAC §8.1 - General Applicability and Standards $5,000 $ 3. 16 TAC §8.51 - Organization Report $1,000 $ 4. 16 TAC §8.101 - Pipeline Integrity Assessment and Management Plans $5,000 $ 5. 16 TAC §8.105 - Records $5,000 $ 6. 16 TAC §8.110 - Operations and Maintenance Procedures $5,000 $ 7. 16 TAC §8.115 - Construction Commencement Report $5,000 $ 8. 16 TAC §8.201 - Pipeline Safety Program Fees 10% of amount due $ 11 9. 16 TAC §8.203 - Supplemental Regulations !1 $5,000 1$ 10. 16 TAC §8.205 - Written Procedure for Handling Natural Gas Leak Complaints $1,000 $ 11. 16 TAC §8.210 - Reports $5,000 $ 12. 16 TAC §8.215 - Odorization of Gas $5,000 ^ 13. 16 TAC §8.220 - Master Metered Systems $5,0.00 $ 14. 16 TAC §8.225 - Plastic Pipe Requirements $5,000 $ 15. 16 TAC §8.230 - School Piping Testing $1,000 $ I 16. 16 TAC §8.235 - Natural Gas Pipelines Public http://info.sos.state.tx.us/fids/16 0008 0245-5.html 1/13/2006 xaii roaa Lommission ot''1'etp • Page 2 of 4 Education $5,000 $ 17. 16 TAC §8.240 - Discontinuance of Service $10,000 $ 18. 49 CFR 192.613 - Continuing surveillance $5,000 $ 19. 49 CFR 192.619 - Maximum allowable operating $5,000 $ $5,000 $ and Liaison pressure 20. 49 CFR 192.625 - Odorization of gas 21. 49 CFR Part 192 - Transportation of Natural and Other Gas by $1,000 Pipeline: Minimum Federal Safety Standards 22. 49 CFR Part 193 - Liquefied Natural Gas Facilities $1,000 $ $ 500 $ 23. 49 CFR Part 199 - Drug and Alcohol Testing 24. Subtotal of typical penalty amounts from Table 1(lines 1 - 23, inclusive) 25. Reduction for settlement before hearing: up to 50% $ % $ of line 24 amt. 26. Subtotal: amount shown on line 241ess applicable settlement reduction (line 25) $ Penalty enhancement amounts for threatened or actual pollution or safety hazard from Table 2 27. Bay, estuary, or marine habitat $5,000 $25,000 $ 28. Impact to a residential or public area $1,000 $15,000 $ 29. Hazardous material release $2,000 $25,000 $ 30. Reportable incident or accident $5,000 - 11 !JjqW http://info.sos.state.tx.us/fids/16 0008 0245-5.htm1 1/13/2006 xaii wau uommission ot '1'e^ Page 3 of 4 $25,000 31. Exceeding pressure control limits IL $5,000 $20,000 $ $10 / square foot $ $100-$2,000 / mo. $ Penalty enhancements for severity of violation from Table 2 3Z. Affected area exceeds 100 square feet 33. Time out of compliance 34. Subtotal: amount on line 26 plus all amounts on lines 27 through 33, inclusive $ Penalty enhancements for culpability of person charged from Table 2 35. Reckless conduct of person charged 36. Intentional conduct of person charged double line 34 amt. $ triple line 34 amt. $ Penalty enhancements for number of prior violations within past seven years from Table 3 37. One 38. Two H. 39. Three 40. Four [41. Five or more IF $1,000 F1 $2,000 ^ $3,000 $4,000 $5,000 $ $ $ Penalty enhancements for amount of penalties within past seven years from Table 4 42. Less than $10,000 $1,000 ^ 43. Between $10,000 and $25,000 $2,500 = ^^ http://info.sos.state.tx.us/fids/16 0008 0245-5.htm1 ' 1/13/2006 RAILROAD COMMISSION OF TEXAS GAS SERVICES DIVISION GAS UTILITIES DOCKET DOCKET # 07-09748 PERMIT # ACTIVE: YES PROTESTED: NO APPLICANT # AND NAME: 6776 ATMOS ENERGY CORP., MID-TEX DIVISION REPRESENTATIVE NAME: Mr. Charles Yarbrough, II PHONE: (214) 206-2809 P. O. Box 650205 CITY CODE Dallas, , TX. 75265 0000 EXAMINER: SUFFIX CODES:(1) JE APPLICATION STATUS: MOTION FOR REHEARING: (2) APPLICATION FILED: NOTICE OF HEARING ISSUED: AMENDED NOH ISSUED: PRE-HEARING CONFERENCE: TRANSCRIPT RECEIVED: PETITION TO INTERVENE DUE: EXCEPTIONS DUE: EXCEPTIONS RECEIVED: REPLIES DUE: REPLIES RECEIVED: ORAL ARGUMENT: SUSPENSION ORDER: INTERIM ORDER SIGNED-1: INTERIM ORDER SIGNED-2: FINAL ORDER ISSUED: MFRH RECEIVED-1: MFRH RECEIVED-2: REPLIES TO MFRH DUE: REHEARING GRANTED: ORDER AFTER MFRH: APPEAL: SUBJECT TEXT REMARKS: (3) 08/17/07 -^ -^ - CO EXAMINER: SUMMARIZE: YES NOTICE NUMBER MULTIPLE ORDERS RELATED CASES HEARING HOURS HEARING : HEARING CANCELLED : BRIEFS DUE : BRIEFS RECEIVED: PROPOSAL FOR DECISION DUE: PROPOSAL ISSUED: CONFERENCE : ADMIN CLOSED : CONFERENCE (INTERIM ORDER) : CONFERENCE (MHR): SOI 35TH DAY: SOI SUSPENDED: SOI 150TH DAY/SUSP.: SOI PARTICIPATE REC: 185TH DAY/APPEAL: RESP. TEST./ EXH. DUE: RESP. TEST. / EXH. REC: INT. TEST. / EXH: DUE: INT. TEST. / EXH. REC: APPL. TEST / EXH. DUE: APPL. TEST. / EXH. REC: Inquiry into the Failure of Atmos Energy Corp., Mid-Tex Division to Comply with Safety Standards. (Filed by: Commission's Own Motion) / / Document Break I 123 45678901 Binder Clip Rubber Band Folder Binder Clip Rubber Band Folder Binder Clip Rubber Band Folder 4. Loose Staple Paper Clip Binder Clip Rubber Band Folder 5. Loose Staple Paper Clip Binder Clip Rubber Band Folder 6. Loose Staple Paper Clip Binder Clip Rubber Band Folder 7. Loose Staple Paper Clip Binder Clip Rubber Band Folder 8. Loose Staple Paper Clip Binder Clip Rubber Band Folder 9. Loose Staple Paper Clip Binder Clip Rubber Band Folder 10. Loose Staple Paper Clip Binder Clip Rubber Band Folder MICHAEL L. WILLIAMS, CHAIRMAN ry LINDIL C. FOWLER, JR., GENERAL COUNSEL VICTOR G. CARRILLO, COMMISSIONER LOWELL E. WILLIAMS, DIRECTOR ELIZABETH A. JONES, COMMISSIONER ENFORCEMENT SECTION RAILROAD COMMISSION OF TEXAS OFFICE OF GENERAL COUNSEL February 28, 2008 Daniel R. Renner Clark,Thomas & Winters P.O. Box 1148 Austin, TX 78767 Re: GAS UTILITIES DOCKET NO. 07-9748 Dear Mr. Renner: Enclosed please find a copy of the Stipulation, Agreed Settlement and Consent Order, in the above mentioned docket, approved by the Commissioners on February 26, 2008 This matter is now closed. Sincerely, Bill Drury Legal Assistant Office of General Counsel - Enforcement (512) 463-6858 cc: Mary McDaniel, GUD Kim Williamson, RRC Secretary Public Information Office Pat Kaiser, Enforcement File 1701 NORTH CONGRESS AVENUE TDD 800-735-2989 OR TDY 512-463-7284 * POST OFFICE Box 12967 * AUSTIN, TExAS 78711-2967 AN EQUAL OPPORTUNITY EMPLOYER * PHONE: 512/463-6762 FAX: 512/463-6989 http://www.rrc.state.tx.us RAILROAD COMMISSION OF TEXAS GAS UTILITIES DOCKET NO. 07-9748: ENFORCEMENT ACTION AGAINST .ATMOS ENERGY CORP., MID-TEX DIVISION (OPERATOR NO. 036589/ID NO. 6776) FOR VIOLATION OF COMMISSION PIPELINE SAFETY RULE 49 CFR §192.703 AT IRVING UNIT 3405 OF SYSTEM 610304, IRVING, DALLAS COUNTY, TEXAS STIPULATION, AGREED SETTLEMENT AND CONSENT ORDER On this the a6'^h day of 2008, the above-entitled and numbered docket came on for consideration by the Railroad Commission of Texas ("Commission"). The Commission and Atmos Energy Corp., Mid-Tex Division ("Atmos Energy") have agreed to an informal disposition of the matters under this docket through this Stipulation, Agreed Settlement and Consent Order ("Order"). The Commission has authority to informally dispose of this contested case docket through a Consent Order pursuant to TEx. GOVT. CODE ANN. § 2001.056(3). IN COMPROMISE AND SETTLEMENT OF THIS DOCKET, the Commission and Atmos Energy do hereby agree and stipulate as follows: 1. Atmos Energy is a "gas utility" as that term is defined in Section 121.001 of the Texas Utilities Code. 2. For the purposes of Chapter 121, Subchapter E of the Texas Utilities Code, Atmos Energy is a person as that term is defined by Title 16, Section 8.5 of the Texas Administrative Code. ' 3. The Atmos Energy distribution system is a gas pipeline facility as defined by Title 16, Section 8.5 of the Texas Administrative Code. 4. Atmos Energy owns and operates the pipeline facility used for the distribution of gas at the Irving Unit 3405 of System 610304, Dallas County, Texas, subject to Title 16, Section 8.1 of the Texas Administrative Code. 5. The Commission and Atmos Energy agree that the alleged violation as set forth in GUD No. 07-9748, regarding Safety Evaluation No. 2007-0385_D, is hereby settled and compromised under the terms of this Order. This Order affects no other matters. 6. The alleged violation by Atmos Energy constitutes an alleged violation of the provisions of Chapter 121 of the Texas Utilities Code or a safety standard or rule. relating to the -distribution of gas and gas pipeline facilities adopted thereunder. 7. Neither this Order, nor' any written or oral offer of settlement related thereto, nor any statement contained therein shall constitute evidence or an admission or adjudication of: (A) any fact or conclusion of law alleged in or relating to Safety Evaluation No. 20070385_D; (B) any violation of any statute, rule or regulation or other wrongdoing or misconduct on the part of Atmos Energy or any director, officer, agent, employee, contractor or affiliate thereof. Consent Order, GUD No. 07T148 • Page 2 of 3 8. Atmos Energy makes no admission of any alleged violation, but wishes to address the Commission's concerns under the terms of this Order. 9. The Commission wishes to further the goals of safety and the prevention and control of pollution within the State of Texas. 10. The Commission has considered any history of previous violations under Chapter 121 of the Texas Utilities Code by Atmos Energy, the seriousness of the alleged violation, and any hazard to the health or safety of the public, and has determined that the facts of this case warrant an informal disposition of the Commission's concerns under the terms of this Order. 11. An opportunity for public hearing regarding the above entitled and numbered docket was given to Atmos Energy, and Atmos Energy has elected not to avail itself of the opportunity for public hearing. 12. The Commission has jurisdiction to assess an administrative penalty against Atmos Energy pursuant to Sections 121.206 and 121.207 of the Texas Utilities Code. 13. The alleged violation as set forth in Gas Utilities Docket No. 07-9748, regarding Safety Evaluation No. 2007-0385_D, has been placed into compliance by Atmos Energy with the requirements of TEx. UTa,. CODE ANN. §121.201 et seq., and Title 16, Chapter 8 of the Texas Administrative Code. 14. An administrative settlement penalty in the amount of THIRTEEN THOUSAND DOLLARS ($13,000) shall be recovered by the Commission for the alleged violation asserted against Atmos Energy, as the operator of the pipeline facility used for the distribution of gas at the Irving Unit 3405 of Irving System 610304, Dallas County, Texas. 15. Atmos Energy has placed into the possession of or has caused to be placed into the possession of the Commission, funds in the amount of THIRTEEN THOUSAND DOLLARS ($13,000) for deposit in the General Revenue Fund, as payment of the administrative penalty assessed. 16. The person signing hereunder for Atmos Energy has authority to represent Atmos Energy in this matter. Jurisdiction of the Commission over this docket having been established, and based upon the agreement of the parties, it is, therefore, ORDERED by the Railroad Commission of Texas, that Atmos Energy is assessed an administrative penalty in the amount of THIRTEEN THOUSAND DOLLARS ($13,000), and that Gas Utilities Docket No. 07-9748 be informally disposed by this Order and closed. Consent Order, GUD No. 07048 Page 3 of 3 Done this-*`fh day of _^Z`("''^ 2008. RAILROAD COMMISSION OF TEXAS (Order approved and signatures affixed by Master Agreed Order dated^ APPROVED AS TO FORM AND SUBSTANCE Atmos Energy Corp., Mid-Tex Division Bv: Daniel R. Renner Attorney for Atmos Energy Corp., Mid-Tex Division y 4, 2008.) RAILROAD COMMISSION OF TEXAS OFFICE OF GENERAL COUNSEL MASTER AGREED ORDER FEBRUARY 26, 2008 At a conference held at its offices in Austin, Texas, the Commission finds that after statutory notice, the. following enforcement Stipulation, Agreed Settlement and Consent Orders were considered. The Orders prepared for the following dockets are incorporated by reference into this Order, and by approval of this Master Agreed Order, the Commission approves the referenced Stipulation, Agreed Settlement and Consent Orders,,and adopts the stipulations and agreements contained therein. DOCKET NO. OPERATOR ORDER TERMS 08-0253435 Raider Oil & Gas Co. (Operator No. 688474). $500.00 Penalty Paid H-15 conducted and passed. 01-0246080 Donoco Oil Company (Operator No. 222733) $1,500.00 Penalty Paid Well plugged. 03-0243231 Expro Engineering, Inc. (Operator No. 257082) $300.00 Penalty Paid Well plugged. 03-0252792 Americo Energy Resources, L.L.C. (Operator No. 019752) $3,000.00 Penalty Paid Plugging extension approved. H- 15 done and well plugged. 01-0254490 Petrogas Operating Corporation (Operator No. 660279) $1,975.00 Penalty Paid Correct sign posted, plugging extension approved. Pollution remediated. 09-0252804 Cooper Oil & Gas Inc. (Operator No. 175111) $3,000.00 Penalty Paid Permit obtained. 04-0253290 I. T. Properties (Operator No. 421725) $1,125.00 Penalty Paid Stopped producing. MASTER AGREED O*R FEBRUARY 26, 2008 CONFERENCE PAGE 2 • DOCKET NO. OPERATOR ORDER TERMS 06-0249049 GGP Exploration, L.T.D. (Operator No. 302567) $16,000.00 Penalty Paid Well Nos. 302, 2001; 2002,2003 wells plugged. All other wells H-15 filed. GUD 07-09748 Atmos Energy Corp., Mid-Tex Div. (Operator No. 036589/ID No. 6776) $13,000.00 Penalty Paid Refresher training was provided. GUD 9775 Atmos Energy Corp., Mid-Tex Div. (Operator No. 036589/ID No. 67760) $6,000.00 Penalty Paid Repairs made during evaluations and inspections. • MASTER AGREED OAR FEBRUARY 26, 2008 CONFERENCE PAGE 3 IT IS ORDERED that each referenced Stipulation, Agreed Settlement and Consent Order shall become effective when this Order is signed and that a copy of this Order shall be affixed to each Stipulation, Agreed Settlement and Consent Order. Done in Austin, Texas on FEBRUARY 26, 2008. AN MICiIAEL L. WIL ISWONER VICTOR G. CARRILLO COMMI$SIONER ELIZABrETH A. JONES SECRETARY AMARILLO NATIONAL BA Amarillo, TX - CHECK DATE CHE&I^IUMB'Ef?_ EGIC AMOI! Void After 90 Days PAY: Thirteen Thousand Dollars And 00 Cents * * * * * * * 4* * ** * * • 09202480 41 L13242194 000 053 LP • Remittance Query Results ^ •..^,{^ - Page 1 of 1 _ Choose an Application - - ^:;. Go ^2 Log out Remittance Management System Remittance Management Main 0.65 sec Remittance Query Results Showing: 1- 1 of 1 results Remitter Name Receipt Amt. Allocated Amt. • Register Number Remit Date Unallocated Amt. Payment Type Remit Status Settlement Date Trace No. Fee Code 6008201 ATMOS ENERGY CORPORATION 12/31/2007 13,000.00 Auth. Code Receipt No. Tracking No. Program Division Allocation Date Current Alloc. Benefactor 13,000.00 1 - CHECK PENDING GC-GENERAL LG-GUD 01/02/2008 General Council Division 13,000.00 GUD 9748 Return • Disclaimer I RRC Online Home I RRC Home I Contact http://webapps.rrc. state.tx.us/RM/remittanceQueryAction. do 1/2/2008 PAY: _r I AMARILLO NATIONAL ?Amarillo, TX CBECK BATE - oudAfterQQDays . Thirteen Thousand Dollars And 00 v-w?hm . FORM ?46809 woo 053 Lm CLARK, THOMAS & WINTERS A PROFESSIONAL CORPORATION TELEPHONE (512) 472-8800 POST OFFICE BOX 1148 AUSTIN, TEXAS 78767 FAX (512) 474-1129 300 WEST 6''" STREET, 15TH FLOOR AUSTIN, TEXAS 78701 December 21, 2007 Via Hand Delivery Ms. Susan German, Staff Attorney Office of General Counsel - Enforcement Railroad Commission of Texas 1701 N. Congress Avenue, 12^' Floor Austin, Texas 78701 RE: GAS UTILITIES DOCKET NO. 07-9748: ENFORCEMENT ACTION AGAINST ATMOS ENERGY CORP., MID-TEX DIVISION (OPERATOR NO. 036589/ID NO. 6776) FOR VIOLATION OF COMMISSION PIPELINE SAFETY RULE 49 CFR §192.703 AT IRVING UNIT 3405 OF SYSTEM 610304, IRVING, DALLAS COUNTY, TEXAS Dear Ms. German: Pursuant to our conversation earlier today, enclosed herewith is an executed Stipulation, Agreed Settlement and Consent Order in connection with the above-referenced docket. I have also enclosed Atmos Energy Corp.'s check in the amount of Thirteen Thousand Dollars ($13,000.00) which covers the administrative penalty concerning the alleged violation in this matter. . I understand that you will post this matter for consideration at the Commission Conference scheduled for February 12, 2008. Thank you for your attention to this matter. Please contact me if you have any additional questions. Very truly yours, Daniel R. Renner DRR: ssm Enclosures cc: Ellen Weaver W:ER2 93977 AGREED ORD& WITH ANY RULE VIOLATION CONFERENCE DATE: OPERATOR NAME: l2b, qw, ^6o ^ almiv4_ 6U_J( OPERATOR NU.MBER: DOCKET NUMBER: HER THAN 14(S)(2) __&IIA. ,l2IAd ''b&j( loE V-. ^ 3 C^ ^J Fj q /7-d 774. (,p 7 7 (.of 6U6 67Uflxl . LEASE & WELL NO: Ji6_j OY 5U^ -y^ RULE (S) VIOLATED: DATE VIOLATIONS BEGAN:_ mv. 15, 260 7 DOCUMENTATION OF COMPLIANCE: or PENALTY PAID: $ c cy (}-^t^r^ o!J REMARKS: STAFF ATTORNEY: ^l 67 LEGAL ASSISTANT: bjC r? . • RAILROAD COMMISSION OF TEXAS GAS UTILITIES DOCKET NO. 07-9748: ENFORCEMENT ACTION AGAINST .ATMOS ENERGY CORP., MID-TEX DIVISION (OPERATOR NO. 036589/I1) NO. 6776) FOR VIOLATION OF COMMISSION PIPELINE SAFETY RULE 49 CFR §192.703 AT IRVING UNIT 3405 OF SYSTEM 610304, IRVING, DALLAS COUNTY, TEXAS STIPULATION, AGREED SETTLEMENT AND CONSENT ORDER On this the - day of 2008, the above-entitled and numbered docket came on for consideration 'by the Railroad Commission of Texas ("Commission"). The Commission and Atmos Energy Corp., Mid-Tex Division ("Atmos Energy") have agreed to an informal disposition of the matters under this docket through this Stipulation, Agreed Settlement and Consent Order ("Order"). The Commission has authority to informally dispose of this contested case docket through a Consent Order pursuant to TEx. GOVT. CODE ANN. § 2001.056(3). IN COMPROMISE AND SETTLEMENT OF THIS DOCKET, the Commission and Atmos Energy do hereby agree and stipulate as follows:. 1. Atmos Energy is a "gas utility" as that term is defined in Section 121.001 of the Texas Utilities Code. 2. For the purposes of Chapter 121, Subchapter E of the Texas Utilities Code, Atmos Energy is a. person as that term is defined by Title 16, Section 8.5 of the Texas Administrative Code. ' 3. The Atmos Energy distribution system is a gas pipeline facility as defined by Title 16, Section 8.5 of the Texas Administrative Code. 4. Atmos Energy owns and operates the pipeline facility used for the distribution of gas at the Irving Unit 3405 of System 610304, Dallas County, Texas, subject to Title 16, Section 8.1 of the Texas Administrative Code. 5. The Commission and Atmos Energy agree that the alleged violation as set forth in GUD No. 07-9748, regarding Safety Evaluation No. 2007-0385_D, is hereby settled and compromised under the terms of this Order. This Order affects no other matters. 6. The alleged violation by Atmos Energy constitutes an alleged violation of the provisions of Chapter 121 of the Texas Utilities Code or a safety standard or rule. relating to the distribution of gas and gas pipeline facilities adopted thereunder. 7. Neither this Order, nor any written or oral offer of settlement related thereto, nor any statement contained therein shall constitute evidence or an admission or adjudication of: (A) any fact or conclusion of law alleged in or relating to Safety Evaluation No. 20070385_D; (B) any violation of any statute, rule or regulation or other wrongdoing or misconduct on the part of Atmos Energy or any director, officer, agent, employee, contractor or affiliate thereof. Consent Order, GUD No. 07* Page 2 of 3 8. Atmos Energy makes no admission of any alleged violation, but wishes to address the Commission's concerns under the terms of this Order. 9. The Commission wishes to further the goals of safety'and the prevention andcontrol of pollution within the State of Texas. 10. The Commission has considered any history of previous violations under Chapter 121 of the Texas Utilities Code by Atmos Energy, the seriousness of the alleged violation, and any hazard to the health or safety of the public, and has determined that the facts of this case warrant an informal disposition of the Commission's concerns under the terms of this Order. 11. An opportunity for public hearing regarding the above entitled and numbered docket was given to Atmos Energy, and Atmos Energy has elected not to avail itself of the opportunity for public hearing. 12. The Commission has jurisdiction to assess an administrative penalty against Atmos Energy pursuant to Sections 121.206 and 121.207 of the Texas Utilities Code. 13. The alleged violation as set forth in Gas Utilities Docket No. 07-9748, regarding Safety Evaluation No. 2007-0385_D, has been placed into compliance by Atmos Energy with the requirements of TEx. UTII.. CODE ANN. § 121.201 et seq., and Title 16, Chapter 8 of the Texas Administrative Code. 14. An administrative settlement penalty in the amount of THIRTEEN THOUSAND DOLLARS ($13,000) shall be recovered by the Commission for the. alleged violation asserted against Atmos Energy, as the operator of the pipeline facility used for the distribution of gas at the Irving Unit 3405 of Irving System 610304, Dallas County, Texas. 15 .. Atmos Energy has placed into the possession of or has caused to be placed into the possession of the Commission, funds in the amount of THIRTEEN THOUSAND DOLLARS ($13,000) for deposit in the General Revenue Fund, as payment of the administrative penalty assessed. 16. The person signing hereunder for Atmos Energy has authority to represent Atmos Energy in this matter. Jurisdiction of the Commission over this docket having been established, and based upon the agreement of the parties, it is, therefore, ORDERED by the Railroad Commission of Texas, that Atmos Energy is assessed an administrative penalty in the amount of THIRTEEN THOUSAND DOLLARS ($13,000), and that Gas Utilities Docket No. 07-9748 be informally disposed by this Order and closed. Consent Order, GUD No. 07-0 Done this Page 3 of 3 . 2008. day of RAILROAD COMMISSION OF TEXAS (Order approved and signatures affixed by Master Agreed Order dated APPROVED AS TO FORM AND SUBSTANCE Atmos Energy Corp., Mid-Tex Division By: Daniel R. Renner Attorney for Atmos Energy Corp., Mid-Tex Division , 2008.) 'WEELOTGGING 14((B)(2) AGREED ORr*S - ONLY CONFERENCE DATE: OPERATOR NAME: 7jJ1), Z te,,^ . Co , &k&A OPERATOR NUMBER: Cd . ), 00 8' 7 DOCKET NUMBER: LEASE & WELL NO: TW. FIELD & COUNTY: hrWi, F K Z q( o, iqoAz^ DATE INACTIVE:. 15- DAY LETTER: PENALTY LETTER: COMPLIANCE DATE: Q(j `7 MANNER OF COMPLIANCE: l^^l - l S DOCUMENTATION OF COMPLIANCE: .PENALTY PAID: $ ^- 15 ` Cc^T ^,oc) - o c, REMARKS: STAFF ATTORNEY: ^ ^^ LEGAL ASSISTANT: ^VC Y7 Wo).- S RAILROAD COMMISSION OF TEXAS OIL & GAS DOCKET NO. 08-0253435: ENFORCEMENT ACTION AGAINST JOE^ G. SOLIS DBA RAIDER OIL & GAS COMPANY (OPERATOR NO. 688474) FOR VIOLATION OF STATEWIDE RULE ON THE J.M. MOSELEY, ET AL (23254) LEASE, WELL NO. 2, WHITE HORSE (CL. FK. 2900) FIELD, CRANE COUNTY, TEXAS STIPULATION, AGREED SETTLEMENT AND CONSENT ORDER On this the day of , 2008, the above-entitled and numbered docket came on for consideration by the Railroad Commission of Texas ("Commission"). The Commission and Joel G. Solis dba Raider Oil & Gas Company have agreed to an informal disposition of the matters under this docket through this Stipulation, Agreed Settlement and Consent Order ("Order"). The Commission has authority to informally dispose of this contested case docket through a consent order pursuant to TEx. Gov'T CODE ANN. § 2001.056(3). IN COMPROMISE AND SETTLEMENT OF THIS DOCKET, the Commission and Joel G. Solis dba Raider Oil & Gas Company do hereby agree and stipulate as follows: 1. Joel G. Solis dba Raider Oil & Gas Company is the person responsible for the J.M. Moseley, et al (23254) Lease, Well No. 2, effective June 1, 1996, approved June 21, 1996, under TEX. NAT. RES. CODE ANN. §91.113. 2. Joel G. Solis dba Raider Oil & Gas Company is the operator of the J.M. Moseley, et al (23254) Lease, Well No. 2, effective June 1, 1996, approved June 21,1996, under TEx. NAT. RES. CODE ANN. § 89.002. 3. Joel G. Solis dba Raider Oil & Gas Company is the operator of the J.M. Moseley, et al (23254) Lease, Well No. 2, effective June 1, 1996, approved June 21, 1996, because he is responsible for the physical operation and control of the said lease and well. 4 Joel G. Solis dba Raider Oil & Gas Company designated himself as the operator of the J.M. Moseley, et al (23254) Lease, Well No. 2, White Horse (CL. FK. 2900) Field, Crane County, Texas, by filing a Commission Form P-4 (Producer's Transportation Authority and Certificate of Compliance), effective June 1, 1996, approved June 21, 1996. 5. The Commission and Joel G. Solis dba Raider Oil & Gas Company agree that the alleged violation of Statewide Rule 14(b)(2), as set forth in Oil & Gas Docket No.;, 08-0253435, is hereby settled and compromised under the terms of this Order. This Order affects no other matters. 6. The alleged violation by Joel G. Solis dba Raider Oil & Gas Company constituted an alleged violation of the provisions of Chapter 81 of the Texas Natural Resources Code which pertain to safety or the prevention or control of pollution, or constituted an alleged violation of the provisions of a rule, license, permit or certificate, which pertain to safety or the prevention or control of pollution, and which were issued under Chapter 81 of the Texas Natural Resources Code. 7. Joel G. Solis dba Raider Oil & Gas Company makes no admission of any alleged violation, but wishes to address the Commission's concerns under the terms of this Order. 8. The Commission and Joel G. Solis dba Raider Oil & Gas Company wish to further the goals of safety and the prevention and control of pollution within the State of Texas. 9. The Commission has considered any history of previous alleged violation under Title Three of the Texas Natural Resources Code by Joel G. Solis dba Raider Oil & Gas Company, the seriousness of any alleged violation, any hazard to the health or safety of the public, and any demonstration of good faith by Respondent, and has determined that the facts of this case warrant an informal disposition of the Commission's concerns under the terms of this Order. 10. An opportunity for public hearing regarding the above entitled and numbered docket was given to Joel G. Solis dba Raider Oil & Gas Company, and Joel G. Solis dba Raider Oil & Gas Company has elected not to avail himself of the opportunity for public hearing. 11. The Commission has jurisdiction to assess an administrative penalty against Joel G. Solis dba Raider Oil & Gas Company, pursuant to TEX. NAT. RES. CoDE ANN. §81.0531: 12. To the extent possible, the alleged violation as set forth in Oil & Gas DocketNo.08-0253435, has been placed into compliance by Joel G. Solis dba Raider Oil & Gas Company, with the requirements of TEx. NAT. RES. CODE AtvN. § 81.052, and 16 TEx. ADIvmN. CODE §3.14(b)(2), by successfully performing an H-15 test on the well. 13. An administrative settlement penalty in the amount of FIVE HUNDRED DOLLARS ($500.00) shall be recovered by the Commission for the violation asserted against Joel G. Solis dba Raider Oil & Gas Company, as the operator and the person responsible for the captioned lease and well. 14. Joel G. Solis dba Raider Oil & Gas Company has placed into the possession of or has caused to be placed into the possession of the Commission, funds in the amount of FIVE HUNDRED DOLLARS ($500.00), for deposit in the Oil-Field Cleanup Fund, as payment of administrative settlement penalties assessed in Oil & Gas Docket No. 08-0253435, pursuant to TEx. NAT. RES. CODE ANN. §81.0531. Jurisdiction of the Commission over this docket having been established, and based upon the agreement of the Commission and Joel G. Solis dba Raider Oil & Gas Company, it is, therefore, ORDERED by the Railroad Commission of Texas that Joel G. Solis dba Raider Oil & Gas Company • is assessed administrative penalties in the amount of FIVE HUNDRED DOLLARS ($500.00), and that Oil & Gas Docket No. 08-0253435 be informally disposed by this Order and closed. All relief not granted in this Order is DENIED. Done this day of , 2008. RAILROAD COMMISSION OF TEXAS (Order approved and signatures affixed by Master Agreed Order dated , 2008) APPROVED AS TO FORM AND SUBSTANCE: Joel G. Solis dba Raider Oil & Gas Company WELL 0 GGING 14((B)(2) AGREED ORD*- ONLY CONFERENCE DATE: od ^ r-7A, OPERATOR NAME:.. co OPERATOR NUMBER: DOCKET NUMBER: V(1 ^= 0^ 5 3^f 3^ LEASE & WELL NO: TLo FIELD & COUNTY: FN, Z Qao .^v /rAJYuI 1_jq' ^06 ti s, ^ZaC) 7 DATE INACTIVE: 15- DAY LETTER: PENALTY .LETTER:_ COMPLIANCE DATE: MANNER OF COMPLIANCE: N- 1.5 DOCUMENTATION OF COMPLIANCE: PENALTY PAID: $ t7- 15 C^C ^ . 1Y1 .7 jod REMARKS: STAFF ATTORNEY: ^ G"7 LEGAL ASSISTANT: 4VC i') RAILROAD COMMISSION OF TEXAS OIL & GAS DOCKET NO. 08-0253435: ENFORCEMENT ACTION AGAINST JOE^ G. SOLIS DBA RAIDER OIL & GAS COMPANY (OPERATOR NO. 688474) FOR VIOLATION OF STATEWIDE RULE ON THE J.M. MOSELEY, ET AL (23254) LEASE, WELL NO. 2, WHITE HORSE (CL. FK. 2900) FIELD, CRANE COUNTY, TEXAS STIPULATION, AGREED SETTLEMENT AND CONSENT ORDER On this the day of , 2008, the above-entitled and numbered docket came on for consideration by the Railroad Commission of Texas ("Commission"). The Commission and Joel G. Solis dba Raider Oil & Gas Company have agreed to an informal disposition of the matters under this docket through this Stipulation, Agreed Settlement and Consent Order ("Order"). The Commission has authority to informally dispose of this contested case docket through a consent order pursuant to TEx. Gov'T CoDE ANN. § 2001.056(3). IN COMPROMISE AND SETTLEMENT OF THIS DOCKET, the Commission and Joel G. Solis dba Raider Oil & Gas Company do hereby agree and stipulate as follows: 1. Joel G. Solis dba Raider Oil & Gas Company is the person responsible for the J.M. Moseley, et al (23254) Lease, Well No. 2, effective June 1, 1996, approved June 21, 1996, under TEx. NAT. RES..CODE ANN. §91.113. 2. Joel G. Solis dba Raider Oil & Gas Company is the operator of the J.M. Moseley, et al (23254) Lease, Well No. 2, effective June 1, 1996, approved June 21, 1996, under TEX. NAT. RES. CODE ANN. § 89.002. 3. Joel G. Solis dba Raider Oil & Gas Company is the operator of the J.M. Moseley, et al (23254) Lease, Well No. 2, effective June 1, 1996, approved June 21, 1996, because he is responsible for the physical operation and control of the said lease and well. 4 Joel G. Solis dba Raider Oil & Gas Company designated himself as the operator of the J.M. Moseley, et al (23254) Lease, Well No. 2, White Horse (CL. FK. 2900) Field, Crane County, Texas, by filing a Commission Form P-4 (Producer's Transportation Authority and Certificate of Compliance), effective June 1, 1996, approved June 21, 1996. 5. The Commission and Joel G. Solis dba Raider Oil & Gas Company agree that the alleged violation of Statewide Rule 14(b)(2), as set forth in Oil & Gas Docket No:t 08-0253435, is hereby settled and compromised under the terms of this Order. This Order affects no other matters. 6. The alleged violation by Joel G. Solis dba Raider Oil & Gas Company constituted an alleged violation of the provisions of Chapter 81 of the Texas Natural Resources Code which pertain to safety or the prevention or control of pollution, or constituted an alleged violation of the 2 provisions of a rule, license, permit or certificate, which pertain to safety or the prevention or control of pollution, and which were issued under Chapter 81 of the Texas Natural Resources Code. 7. Joel G. Solis dba Raider Oil & Gas Company makes no admission of any alleged violation, but wishes to address the Commission's concerns under the terms of this Order. 8. The Commission and Joel G. Solis dba Raider Oil & Gas Company wish to further the goals of safety and the prevention and control of pollution within the State of Texas. 9. The Commission has considered any history of previous alleged violation under Title Three of the Texas Natural Resources Code by. Joel G. Solis dba Raider. Oil & Gas Company, the seriousness of any alleged violation, any hazard to the health or safety of the public, and any demonstration of good faith by Respondent, and has determined that the facts of this case warrant an informal disposition of the Commission's concerns under the terms of this Order. 10. An opportunity for public hearing regarding the above entitled and numbered docket was given to Joel G. Solis dba Raider Oil & Gas Company, and Joel G. Solis dba Raider Oil & Gas Company has elected not to avail himself of the opportunity for public hearing. 11. The Commission has jurisdiction to assess an administrative penalty against Joel G. Solis dba Raider Oil & Gas Company, pursuant to TEx. NAT. RES. CODE ANN. §81.0531: 12. To the extent possible, the alleged violation as set forth in Oil & Gas Docket No.08-0253435, has been placed into compliance by Joel G. Solis dba Raider Oil & Gas Company, with the requirements ofTEx.NAT. RES. CODEAww. §81.052, and 16 TEx. ADNUN. CODE §3.14(b)(2), by successfully performing an H-15 test on the well. 13. An administrative settlement penalty in the amount of FIVE HUNDRED DOLLARS ($500.00) shall be recovered by the Commission for the violation asserted against Joel G. Solis dba Raider Oil & Gas Company, as the operator and the person responsible for the captioned lease and well. 14. Joel G. Solis dba Raider Oil.& Gas Company has placed into the possession of or has caused to be placed into the possession of the Commission, funds in the amount of FIVE HUNDRED DOLLARS ($500.00), for deposit in the Oil-Field Cleanup Fund, as payment of administrative settlement penalties assessed in Oil & Gas Docket No. 08-0253435, pursuant to TEX. NAT. REs. CODE ANN. §81.0531. Jurisdiction of the Commission over this docket having been established, and based upon the agreement of the Commission and Joel. G. Solis dba Raider Oil & Gas Company, it is, therefore, ORDERED by the Railroad Commission of Texas that Joel G. Solis dba Raider Oil & Gas Company is assessed administrative penalties in the amount of FIVE HUNDRED DOLLARS ($500.00), and that Oil & Gas Docket No. 08-0253435 be informally disposed by this Order and closed. All relief not granted in this Order is DENIED. Done this day of , 2008. RAILROAD COMMISSION OF TEXAS (Order approved and signatures affixed by Master Agreed Order dated 92008) APPROVED AS TO FORM AND SUBSTANCE: Joel G. Solis dba Raider Oil & Gas Company • RAILROAD COMMISSION OF TEXAS GAS UTILITIES DOCKET NO. 07-9748: ENFORCEMENT ACTION AGAINST .ATMOS ENERGY CORP., MID-TEX DIVISION (OPERATOR NO. 036589/ID NO. 6776) FOR VIOLATION OF COMMISSION PIPELINE SAFETY RULE 49 CFR §192.703 AT IRVING UNIT 3405 OF SYSTEM 610304, IRVING, DALLAS COUNTY, TEXAS STIPULATION, AGREED SETTLEMENT AND CONSENT ORDER On this the _ day of 2008, the above-entitled and numbered docket came on for consideration by the Railroad Commission of Texas ("Commission"). The Commission and Atmos Energy Corp., Mid-Tex Division ("Atmos Energy") have agreed to an informal disposition of the matters under this docket through this Stipulation, Agreed Settlement and Consent Order ("Order"). The Commission has authority to informally dispose of this contested case docket through a Consent Order pursuant to TEx. GovT. CODE AivN. § 2001.056(3). IN COMPROMISE AND SETTLEMENT OF THIS DOCKET, the Commission and Atmos Energy do hereby agree and stipulate as follows: l. Atmos Energy is a "gas utility" as that term is defined in Section 121.001 of the Texas Utilities Code. 2. For the purposes of Chapter 121, Subchapter E of the Texas Utilities Code, Atmos Energy is a person as that term is defined by Title 16, Section 8.5 of the Texas Administrative Code. 3. The Atmos Energy distribution system is a gas pipeline facility as defined by Title 16, Section 8.5 of the Texas Administrative Code, 4. Atmos Energy owns and operates the pipeline facility used for the distribution of gas at the Irving Unit 3405 of System 610304, Dallas County, Texas, subject to Title 16, Section 8.1 of the Texas Administrative Code. 5. The Commission and Atmos Energy agree that the alleged violation as set forth in GUD No. 07-9748, regarding Safety Evaluation No. 2007-0385_D, is hereby settled and compromised under the terms of this Order. This Order affects no other matters. 6. The alleged violation by Atmos Energy constitutes an alleged violation of the provisions of Chapter 121 of the Texas Utilities Code or a safety standard or rule relating to the distribution of gas and gas pipeline facilities adopted thereunder. 7. Neither this Order, nor any written or oral offer of settlement related thereto, nor any statement contained therein shall constitute evidence or an admission or adjudication of: (A) any fact or conclusion of law alleged in or relating to Safety Evaluation No. 20070385_D; (B) any violation of any statute, rule or regulation or other wrongdoing or misconduct on the part of Atmos Energy or any director, officer, agent, employee, contractor or affiliate thereof. Consent Order, GUD No. 070 ! Page 2 of 3 8. Atmos Energy makes no admission of any alleged violation, but wishes to address the Commission's concerns under the terms of this Order. 9. .The Commission wishes to further the goals of safety and the prevention and control of pollution within the State of Texas. 10. The Commission has considered any history of previous violations under Chapter 121 of the Texas Utilities Code by Atmos Energy, the seriousness of the alleged violation, and any hazard to the health or safety of the public, and has determined that the facts of this case warrant an informal disposition of the Commission's concerns under the terms of this Order. 11. An opportunity for public hearing regarding the above entitled and numbered docket was given to Atmos Energy, and Atmos Energy has elected not to avail itself of the opportunity for public hearing. 12. The Commission has jurisdiction to assess an administrative penalty against Atmos Energy pursuant to Sections 121.206 and 121.207 of the Texas Utilities Code. 13. The alleged violation as set forth in Gas Utilities Docket No. 07-9748, regarding Safety Evaluation No. 2007-0385_D, has been placed into compliance by Atmos Energy with the requirements of TEx. UTIL. CODE ANN. §121,201 et seq., and Title 16, Chapter 8 of the Texas Administrative Code. '14. An administrative settlement penalty in the amount of THIRTEEN THOUSAND DOLLARS ($13,000) shall be recovered by the Commission for the alleged violation asserted against Atmos Energy, as the operator of the pipeline facility used for the distribution of gas at the Irving Unit 3405 of Irving System 610304, Dallas County, Texas. 15. Atmos Energy has placed into the possession of or has caused to be placed`into the possession of the Commission, 'funds in the amount of THIRTEEN THOUSAND DOLLARS ($13,000) for deposit in the General Revenue Fund, as payment of the administrative penalty assessed. 16. The person signing hereunder for Atmos Energy has authority to represent Atmos Energy in this matter. Jurisdiction of the Commission'over this docket having been established, and based upon the agreement of the parties, it is, therefore, ORDERED by the Railroad Commission of Texas, that Atmos Energy is assessed an administrative penalty in the amount of THIRTEEN THOUSAND DOLLARS ($13,000), and that Gas Utilities Docket No. 07-9748 be informally disposed by this Order and closed. Consent Order,) GUD No. 07-J748 Done this Page 3 of 3 day of 2008. RAILROAD COMMISSION OF TEXAS (Order approved and signatures affixed by Master Agreed Order dated APPROVED AS TO FORM AND SUBSTANCE Atmos Energy Corp., Mid-Tex Division By: Daniel R. Renner Attorney for Atmos Energy Corp., Mid-Tex Division , 2008.) MARY L. MCDANIEL, P. E. DIRECTOR SAFETY DIVISION MICHAEL L. WILLIAMS, CHAIRMAN VICTOR G. CARRILLO, COMMISSIONER ELIZABETH A. JONES, COMMISSIONER RAILROAD CoMMIssI oN OF TEXAS SAFETY D.IVISION November 21, 2007 Ms. Patti Richards V. P. Technical Services ATMOS ENERGY CORP., MID-TEX DIVISION P. 0. Box 223705 Dallas, TX 75'222-3705Re: Pipeline Safety Evaluation No(s): 2007-0385_D ATMOS ENERGY/IRVING (All correspondence must include the Evaluation No.) Dear Ms. Patti Richards: We have received your letter of September 26, 2007, stating that all alleged violations found during the above-referenced evaluation(s) have been corrected. A follow-up visit to your system will be scheduled in the future to determine if your corrective actions are sufficient. If you have questions please 'contact the appropriate regional office identified in the enclosed memo. r.7 I I i^ J ^ Mary ^Mca'^, Director . ,/ E. 1701 NORTH CONGRESS AVENUE * POST OFFICE BOX 12967 * AUSTIN, TEXAS 78711-2967 * PHONE (512) 463-7058 FAX (512) 463-7319 TDD (800) 735-2989 OR TDY (512) 463-7284 AN EQUAL OPPORTUNITY EMPLOYER (12/11%2007) Susan German - GUD - 07dK48 ag. Atmos"Energy From: Susan German To: Subject: McDaniel, Mary; Sambrano, Angie GUD - 07-9748 ag. Atmos Energy GZ( )r(t, I Dan Renner called about this dkt. He would like to know if LPG discounts by 50% its enhancements in order to settle? (we don't discount any enhancement in Oil & Gas, but I believe you have done so in the past.) Let me know and I'II call hi . Thx. sg yU UUL • ^. )KRegional Review Transmittal Cover Sheet for Review of Operator Correspondence gEItW By. ASAP ATTE^MON: ALFRED 1Zegional0ffice: GARL• AN D Date Mailed: 10/5/07 Bva.luation NOW 07-0385 And/',Chrough, Repeat Violations: ❑ Yes Operator Correspondence Dated: 9/26/07 No Attached correspondence and recommended action; ❑ POC Pending ❑ Approved Estimated Completion Date: ❑ k Approved and Complete Confirmed Completion Date: ❑ Revisions Required (To confirm completion repeat violations must also be complete) New POC Due Date: ❑ Extension New POC Due Date: ❑ Delinquent ❑ Completion Pending , New POC Due Date: ptfl.A • I Confirmed Completion Date: X Confirmed Completion ❑ Extension New Completion Due Date: ❑ Delinquent New Completion Due Date: Q Completion Pending (Repeat Violations Only) ❑ Confirmed Completion Confirmed Completion Date: ❑ Delinquent Notes: Review the attached operator correspondence and indicate the recommended action above. When revisions are required to the Plan of Correction, use backside of this form to referenee the evaluation number and violation item number to describe the deficiency. f41so, enter the estimated completion date and the confirmcd completion date wkhore appropriate for each violation on the PS-43 form(s). The iniiial correspondence package is being copied to your "OGER" foldcr on your networks. Rctu%ki(!SQ the to Catrie or Shantcl for fiuthtt processing . RRC oFTE^, e^^ 11 Zo^1 SAFE^ O^vTS^XAS GpEtt,p^N l form(s) )9:07:56 Mon Oct 15, 2007 VIOLATYONS CITED GMC008 ,SYSTEM ID : 610304 SYSTEM NAME: IRVING EVAL NO: 07-0385 .. NO OF V I0LATTONS : 001 SELECT VIOLATIONS 001) 01-703-002 REPEAT EST COMP DATE 07-31-07 CONFIRMED 07-26-07 REMARKS NO ENTER AN 'IS" FOR VIOLATION DESCRIPTION OR AN "R" FOR VIOLATION REMARKS PF1=RETURN TO SUMMA1tY, PF2=ADD, PF3=FORWARD RECORD UPDATED, PF2, TO ADD .iu : .i.a: i•i wea liec ub, 2uu'i. 0 VIOLATIONS CITED SYSTEM ID : 610304 SYSTEM NAME: IRVING EVAL NO: 07-0385 NO OF VIOLATIONS: 001 SELECT VIOLATIONS 001) 01-703-002 REPEAT EST COMP DATE 07-31-07 ^ TM CONFIRMED 07-26-07 GMC008 REMARKS NO- ENTER AN "S" FOR 'VIOLATION DESCRIPTION OR AN "R" FOR VIOLATION REMARKS PF1=RETURN TO SUMMARY, PF2 ADD, PF5=FORWARD NO MORE VIOLATIONS, PF2 TO ADD VIOLATIONS, PF4 RESTARTS SCROLL * IV Al k ^ energy MOS A T A0 ^^^^ •t: OCT 5 2p01.cc Patti Richards Vice President Technical Services September 26, 2007 F;Ei.E-i1'ED R.R.C. Ms. Mary McDaniel , P.E. Director, Safety Division Railroad Commission of Texas OCT 0 1 2007 SAFETY DiViSION AUSTIN, TE;CAS- Post Office Box 12967 Austin, TX 78711 Re: Safety Evaluation No. 07-0385D Irving Unit Dear Ms. McDaniel: Please be advised that all actions-taken in response to the referenced safety evaluation have been completed. The attached listing documents the actions taken. If further information is needed or if you have any questions concerning the actions taken, please do not hesitate to contact me. Patti Richards Attachment Atmos Energy Corporation 5420 LBJ Freeway, Suite 1800, Dallas, TX 75240 P 214-206-2807 F 214-206-2126 patti.richards@atmosenergy.com ATMOS ENERGY CORPORATION MID-TEX DIVISION RAILROAD COMMISSION SAFETY EVALUATION NOS. 07-0385D IRVING UNIT Irving - S.E. No. 07-0385D 1. On July 26, 2007, refresher training was provided to the appropriate technicians in the Irving Unit. CLARI^, THOMAS & WINTERS A PROFESSIONAL CORPORATION TELEPIIONE ( 512) 472-8800 POST OFFICE BOX 1148 AUSTIN, TEXAS 78767 FAX (512) 474-1129 300 WEST 6''° STREET, 15TH FLOOR AUSTIN, TEXAS 78701 December 21, 2007 Via Hand Delivery Ms. Susan German, Staff Attorney Office of General Counsel - Enforcement . Railroad Commission of Texas 1701 N. Congress Avenue, 12th Floor Austin, Texas 78701 RE: '33 GAS UTILITIES DOCKET NO. 07-9748: ENFORCEMENT ACTION AGAINST ATMOS ENERGY CORP., MID-TEX DIVISION (OPERATOR NO. 036589/ID NO. 6776) FOR VIOLATION OF COMMISSION PIPELINE SAFETY RULE 49 CFR §192.703 AT IRVING UNIT 3405 OF SYSTEM 610304, IRVING, DALLAS COUNTY, TEXAS Dear Ms. German: . Pursuant to our conversation earlier today, enclosed herewith is an executed Stipulation, Agreed Settlement and Consent Order in connection with the above-referenced docket. I have also enclosed Atmos Energy Corp.'s check in the amount of Thirteen Thousand Dollars ($13,000.00) which covers the administrative penalty concerning the alleged violation in this matter. I understand that you will post this matter for consideration at the Commission Conference scheduled for February 12, 2008. Thank you for your attention to this matter. Please contact me if you have any additional questions. Very truly yours, Daniel R. Renner DRR: ssm Enclosures cc: Ellen Weaver W:ER2 93977 • RAILROAD COMMISSION OF TEXAS GAS UTILITIES DOCKET NO. 07-9748: ENFORCEMENT ACTION AGAINST .ATMOS ENERGY CORP., MID-TEX DIVISION (OPERATOR NO. 036589/ID NO. 6776) FOR VIOLATION OF COMMISSION PIPELINE SAFETY RULE 49 CFR §192.703 AT IRVING UNIT 3405 OF SYSTEM 610304, IRVING, DALLAS COUNTY, TEXAS STIPULATION, AGREED SETTLEMENT AND CONSENT ORDER On this the _ day of 2008, the above-entitled and numbered docket came on for consideration by the Railroad Commission of Texas ("Commission"). The Commission and Atmos Energy Corp., Mid-Tex Division ("Atmos Energy") have agreed to an informal disposition of the matters under this docket through this Stipulation, Agreed Settlement and Consent Order ("Order"). The Commission has authority to informally dispose of this contested case docket through a Consent Order pursuant to TEx. GOVT. CODE ANN. § 2001.056(3). IN COMPROMISE AND SETTLEMENT OF THIS DOCKET, the Commission and Atmos Energy do hereby agree and stipulate as follows: 1. Atmos Energy is a "gas utility" as that term is defined in Section 121.001 of the Texas Utilities Code. 2. For the purposes of Chapter 121, Subchapter E of the Texas Utilities Code, Atmos Energy is a person as that term is defined by Title 16, Section 8.5 of the Texas Administrative Code. 3. The Atmos Energy distribution system is a gas pipeline facility as defined by Title 16, Section 8.5 of the Texas Administrative. Code. 4. Atmos Energy owns and operates the pipeline facility used for the distribution of gas at the Irving Unit 3405 of System 610304, Dallas County, Texas, subject to Title 16, Section 8.1 of the Texas Administrative Code. 5. The Commission and Atmos Energy agree that the alleged violation as set forth in GUD No. 07-9748, regarding Safety Evaluation No. 2007-0385_D, is hereby settled and compromised under the terms of this Order. This Order affects no other matters. 6. The alleged violation by Atmos Energy constitutes an alleged violation of the provisions of Chapter 121 of the Texas Utilities Code or a safety standard or rule relating to the distribution of gas and gas pipeline facilities adopted thereunder. 7. Neither this Order, nor any written or oral offer of settlement related thereto, nor any statement contained therein.shall constitute evidence or an admission or adjudication of: (A) any fact or conclusion of law alleged in or relating to Safety Evaluation No. 200703 85_D; (B) any violation of any statute, rule or regulation or other wrongdoing or misconduct on the part of Atmos Energy or any director, officer, agent, employee, contractor or affiliate thereof. Consent Order, GUD No. 078 • Page 2 of 3 8. Atmos Energy makes no admission of any alleged violation, but wishes to address the Commission's concerns under the terms of this Order. 9. The Commission wishes to further the goals of safety and the prevention and control of pollution within the State of Texas. 10. The Commission has considered any history of previous violations under Chapter 121 of the Texas Utilities Code by Atmos Energy, the seriousness of the alleged violation, and any hazard to the health or safety of the public, and has determined that the facts of this case warrant an informal disposition of the Commission's concerns under the terms of this Order. 11. An opportunity for public hearing regarding the above entitled and numbered docket was given to Atmos Energy, and Atmos Energy has elected not to avail itself of the opportunity for public hearing. 12. The Commission has jurisdiction to assess an administrative penalty against Atmos Energy pursuant to Sections 121.206 and 121.207 of the Texas Utilities Code. 13. The alleged violation as set forth in Gas Utilities Docket No. 07-9748, regarding Safety Evaluation No. 2007-0385_D, has been placed into compliance by Atmos Energy with the requirements of TEx. UTa;. CoDE ANN. §121.201 et seq., and Title 16, Chapter 8 of the Texas Administrative Code. 14, An administrative settlement penalty in the amount of THIRTEEN THOUSAND DOLLARS ($13,000) shall be recovered by the Commission for the alleged violation asserted against Atmos Energy, as the operator of the pipeline facility used for the distribution of gas at the Irving Unit 3405 of Irving System 610304, Dallas County, Texas. 15. Atmos Energy has placed into the possession of or has caused to be placed into the possession of the _ Commission, funds in the amount of THIRTEEN THOUSAND DOLLARS ($13,000) for deposit in the General Revenue Fund, as payment of the administrative penalty assessed. 16. The person signing hereunder for Atmos Energy has authority to represent Atmos Energy in this matter. Jurisdiction of the Commission over this docket having been established, and based upon the agreement of the parties, it is, therefore, ORDERED by the Railroad Commission of Texas, that Atmos Energy is assessed an administrative penalty in the amount of THIRTEEN THOUSAND DOLLARS ($13,000), and that Gas Utilities Docket No. 07-9748 be informally disposed by this Order and closed. Consent Order, GUD No. 0- 48 Done this Page 3 of 3 day of 2008. RAILROAD COMMISSION OF TEXAS (Order approved and signatures affixed by Master Agreed Order dated APPROVED AS TO FORM AND SUBSTANCE Atmos Energy Corp., Mid-Tex Division By: Daniel R. Renner Attorney for Atmos Energy Corp., Mid-Tex Division , 2008.) Document Break I J 1 23 4 5678901 Staple Paper Clip Binder Clip Rubber Band Folder oose Paper Clip Binder Clip Rubber Band Folder 3. Loose Staple Paper Clip Binder Clip Rubber Band Folder 4. Loose Staple Paper Clip Binder Clip Rubber Band Folder 5. Loose Staple Paper Clip Binder Clip Rubber Band Folder 6. Loose Staple Paper Clip Binder Clip Rubber Band Folder 7. Loose Staple Paper Clip Binder Clip Rubber Band Folder 8. Loose Staple Paper Clip Binder Clip Rubber Band Folder 9. Loose Staple Paper Clip Binder Clip Rubber Band Folder 10. Loose Staple Paper Clip Binder Clip Rubber Band Folder DEC-18-?-Q07_TUE 03:22 PM 00 FAX NO. 000 P. 01 0 CLARK,TIYOlV1AS & WINTERS A Professional Corporn tion Post Office Box 1148 ,A,Llsti[1, `Tcxas 78767 300 West 6th Street, 15th Floor Austin, Texas 78701 ?_> -^ 1 ^^!J;^'; Jt.s J Tt? LEPHC)NE 517/472-8800 I'.trLKO1' IF-R 512/474-1129 TELECOP''f^' COVER SHEET I.>atc:.,,..,, ..^.,.Dcoe;mbcr 18, 2007 Pagc I of _,•4- PLEASE l)lSTRIBUTI+, TO THE FOY,.LOWINCY. rAX NUMBER NAME ^ S^t^aai^ ^erma^l r,_- ..-.....,.-..,.....,. F1iOM 463-6989 ..r._.-...- J1awl R^.^Y^nel. Sent by: Sherry Banks 512/472-8$00, cx(. 1367, Susan: Draft consent order is attached for yo^'eview: rr -Please take a look at it and then give me a call at 495-8822, I've ggr1he check from Atmas. Thanks C) a n CONI+ IUY+:NTIALITY NOTICE TillS MESSAGk; IS INTENC)Ell ONLYFORTHE USE OFTHE INDZYIDUALOkI:NTITYTO WHOM I11S ADDRESSED, AND MAY Ci)N7'AIN INrORMATION'I'HA'1" IS PRIVILEGED AND CON1+ILlENTIAl,, OR TI3.AT t:()NS,rrrr f T[;S WaRX PRODIrCT ANl) IS E XEMPT FROM DISCLOSURE UNDER APPLICAIti,1+." r,AIM ri+ 'i`lifl; READER nFC'HiS MESSAGE IS NOT THE 1N'1'EN.DED REC:IPIEN'.L OR TIIE EMPLOYEE OR AC,I+;NT ItESrONSIB[.tt;, FOR I)1",C.iVE1tING Tt-IF, MESSAGE TO THE INTENDED 12ECIPIFNT,1lOEJAXtE VEX3I+:BY NO'I'I•L+'1 ED TICAT ANY USE, DISSEMINATION, nISTRII3UTION, OR COPYINC. ()1+' 'I^YIIS [`OMiVl CJNX(:A.'1101V IS STRICTLY PROHIBYTF,D. IFYC1U HA'VFRECFivED 'Tilrs C.OmMUNICNI•IOrr IN XiaitTiOR, 1'I.I+:ASN) NOTIFY trS IMMEDIATELY BY TEI'.EPIYONE AND RETURN THE ORIGINAL ME SSAGI+: TO C1S AT THE ABOVE ADDRESS VIA THE U.S. POSTA.I. SERVICE. DEC-18 ,200.7- TUE 03:22 PM 00 FAX NO. 000 P. 02 P>ktAF^` 1- 1 or^`"/Fsv ^^^ -,. RAYI.I7OAA COMMISSION OT+'TEXh^S NO 07-9748: Ii'.NI+'OIiC^GMENT ACTION ACzA1NS'' YJ1^^II, ')!")1+',y 1)U(,KFT . ^ ^ 2{f!1' C'rUttl' 1ViII)-'1'L+`7C I)IVISIUN (^I'LRA'140It NO O%GSl^9/lD 1V() 677fi) rI'Mt)ril+" ^^ , , R§192.703 A!E^ ^^Cf4^ i, , ;i^(^^i^I +C^^' (^,tJMMISSiON PIPELINE SA1+L! i' rrUT^F^ 49 ^C.I+ AT T ^ 610304 A. 3=^05 OF 1.SvS''EM • 4^ ^^^^"L^IT ^ ,IRVIt^C^ ^ ^ALr AAS GUUN'rY j 'I'LXAS S'I'IPl.Jr1A'rYON,1iCyREEI) ST4' 'I"'!"I.EIVIENT AND CONSENT Oitxl<)I+,It 2008, the above-entitlecl and numbt;reel docket ctinle On this the w_ day of on for consicd4ralicm by the Railroad Commission of 7'exas (°°Cortiniission°°). The Commission rirttl Atmos 13nergy Corp„ ]vlid-'1'cx Division ("Atrms Energy") have agreed to an informal dispositiort of the mtatters trncic;r this docket through this Stipulation, Agreed Settlen1ent and C<)11fiV1tt Orclcr ("C7rcicr"). The Cotnlnission has authority to informally dispose of this contested c^tsc (aocl;,et throu-h a Consent Order pursuant to Tr--x. G0vT. COr31? ANN. § 2001,05h(3). IN COMI'ROMISI's AND SETTLEMENT OF THIS DOCKET, the Commission and Auiios I',nc:a•gy do hereby ayrce and stipulate as follows: !. Atmos Eitcrgy is ti "gas utility" as that terrn is defined in Section 121.001 of the "1'exaS Utilities Code, 2. For the f,t7rposcs of Chapter 121, Suffichapter F of the Texas Utilities Code, Atn•yos l:^,nc:rgy is a person as that term is defined by Title 16, Secticm.8,5 of the rt'c:xas Acimityistrtttive Code:. 3. The Atastos Lnergy clistribution sysletn is a gas pipeline facility as defined by Title 16,I Seetion 8.5 of tlic'rexas Administrative Code. it, Atmos Ene:t•gy owns and operates the pipeline facility used for the distribution of gas at the lrvin^, Utiit 3405 of Systcrn 610304, Datizs County, ''exais, subjcct to ''itl^: 1.6, Section S.1 of t.he Texas Administrative Code. 5. The Commtission and Atmos Enet-gy agree that the alleged violation as set 1'o3•th in Ca[,lD No. 07-9748, regarding Safety Fvaluation No, 2007-0385 D, is hereby settled and compromised ttndcr the terms of this Order. This Order affect.s no other matters. 6. '1'he,.rlleged violation by Atmos Energy constitutes an alleged violation of the provisions of Chartet• 121 of the Texas Utilities Code or a safety standard or rule relating to the distribution or gas and gas pipeline facilities adopted thereunder. 7. Neitiicr this Orc]or, nor any written or oral offer of settiement related thereto, nor any statcrnunt uontitined therein slzali constitute evidence or an admission or acijudic^ttion c5f: (A) any fact or conclusion of law alleged in or relating to Safety Evaluation No, 20070385_n, (]i) any violation of any statute, rule or regulation or other wron;doing, or misconcluct on the part of Atmos Frnergy or any director, offieer, agent, employee, contractor or affiliate thereof. DEC-18 -,2007, TUE 03: 23 PM 00 Consent Order, L,1fD Na. 07-9748 FAX NO. 000 P. 03 Page 2 of 3 8. Atrnos Ert4rgy makes no admission of any alleged violation, but wishes to adcircss (he (::ommission's concerns under the terms of this Order. a. The Conimistiion wishes to further the goals of safety and the prevention and cqnircaZ o!` l)ollution within the State of Texas. 10. The <."cammission has considered any history of previous violations wider Chapter 121 of the 'C`cxas Utilitiu4 Code by Atmos Energy, the seriousness of the alleged violation, and any hazard to the health or safety of the public, and has determined that. the facts of this ease warrant an informal disposition of the Cornmission's concerns under the teriYis of this Order. 11. An oppoi-tunily for public hearing regarding the above ertititlcd.znd numbered docket was given to Atmos T-,nergy, and AtmoS Energy has elected not to avail itself Of the I opportunity fot-pLlblic hearing. 12. The Corrirriission has jurisdiction to assess an administrfitive penalty against Atm()s l_:ner•gy pxtryuant to Sections 121,206 and 121.207 of the Texas Utilities Code. 13. The ttllr:gec,l violation as set ('ox-tl1 in Gas Utilities Docket No, 07-974b, regarding Safety I,"svaluation No. 2007-03$5 D, has been piaced into compliance by Atmos Energy with tho rCquircznents of TFX. UTIL. CopF. ANN. §121.201 et seq., and Title 16, Chapter 8 of the Toxas Aclininistrative Code. 14. An ttchtlinistnitive settlement penalty in the amount of THIRTECN TC-1nUSANL) 1')Oi.LAlta ($13,000) shall be recovered by the Commission for the allegetl violltioii asserted ^igainst Atmos Energy, as the operator of the pipeline facility used for the clistribution of gas at the Irving Unit 3405 of Irving System 610304, Dallas County, Texas, 15, Atmc75 1?ncray has placed into the possession of or has caused to be placed into the possession of the Commission, funds in the amount of TiI7RTF•EIV THOUSAND DOi.sl"ARS ($13,000) for deposit in the General Revenuu: Fund, as payment of the acintin istrunt of "1''H1RTliEN '!'l-IOITSANI.3 1')01.,1.ARS ($13,000), and that Gas Utilities Docket No. 07-9749 be ij7formstlly cii5l)osctl by thiS ()rclcr and closed. DEC-18 ?007 TUE 03:23 PM 00 C;c>usent Orckr^ CUD No. 07-9748 Doue this P. 04 FAX NO. 000 Page 3 of 3 day of 2008. . RAILROAD COMMISSION OF TEXAS (Order approved and signatures affixed by Maslc:r Agreed Order dated , 2008.) A PPROVED AS'L'O FORM AND SUBSTANCE Atnaos E meri;y° Corp., Mid-Tem Division liy: i)aoie1 R. Renner Attorney for Atmos Energy Corp., Mid.7'ex Division Document Break I ILJ 1 23 4 567890 1 Staple Paper Clip Binder Clip Rubber Band Folder Paper Clip Binder Clip Rubber Band Folder 3. Loose taple Paper Clip Binder Clip Rubber Band Folder 4. Loose Staple Paper Clip Binder Clip Rubber Band Folder 5. Loose Staple Paper Clip Binder Clip Rubber Band Folder 6. Loose Staple Paper Clip Binder Clip Rubber Band Folder 7. Loose Staple Paper Clip Binder Clip Rubber Band Folder 8. Loose Staple Paper Clip Binder Clip Rubber Band Folder 9. Loose Staple Paper Clip Binder Clip Rubber Band Folder 10. Loose Staple Paper Clip Binder Clip Rubber Band Folder From: To: Date: Subject: Mary McDaniel German, Susan; Sambrano, Angie 12/11/2007 2:44 PM Re: GUD - 07-9748 ag. Atmos Energy r2.)J1 (o--r Yes, because we filed this with enforcement as au^enh-ancement for reporta ^bTeinciden accide t not for reckless conduct as written in the letter. I would be a 50% max. ^ V . >>> Susan German 12/11/07 2:28 PM »> Dan Renner called about this dkt. He would like to know if LPG discounts by 50% i'C§enTiancements in order to settle? (we don't discount any enhancement in Oil & Gas, but I believe you have done so in the past.) Let me know and I'll call him. Thx. sg Susan A. German, Staff Attorney Office of General Counsel - Enforcement Railroad Commission of Texas (512) 463-8589 (512) 463-6989 susan.aerman (^rrc.state.tx, us Notice: This e-mail (including attachments) is covered by the Electronic Communications Privacy Act, 18 U.S.C. sections 2510-2521, is confidential and may be legally privileged. If you are not the intended recipient, you are hereby notified that any retention, dissemination, distribution, or copying of this communication is strictly prohibited. Please reply to the sender if you have received the message in error, then delete it. Thank you. ♦ MICHAEL L. WILLIAMS, CHAIRMAN VICTOR G. CARRILLO, COMMISSIONER LINDIL C. FOWLER, JR., GENERAL COUNSEL LOWELL E. WILLIAMS, .VIRSCTOR ELIZABETH A. JONES, COMMISSIONER ENFORCEMENTSECTION RAILROAD COMMISSION OF TEXAS OFFICE OF GENERAL COUNSEL December 14, 2007 Jon Renner, Atty for Atmos Energy Corp., Mid-Tex Div. c/o Clark, Thomas, et al. P.O. Box 1148 Austin, Tx 78767 Re: Gas Utilities Docket No. 07-9748: Enforcement Action Against Atmos Energy Corp., Mid-Tex Division (Operator No. 036589/ID No. 6776) for Alleged Violation of Commission Pipeline Safety Rule 49 CFR § 192.703 at Irving Unit 3405 of System 610304, Irving, Dallas County, Texas Dear Mr. Renner: As requested, enclosed is a First Amended Original Complaint filed against your client in the above-captioned docket. I look forward to receiving your draft Agreed Order for settlement. If you have any questions, please call me. Yours truly,. ^^ Sus an G rman, Staff Attorriey Office of General Counsel - Enforcement (512) 463-8589 1701 NORTH CONGRESS AVENUE TDD 800-735-2989 OR TDY 512463-7284 * POST OFFICE BOX 12967 * AUSTIN, TExns 78711-2967 AN EQUAL OPPORTUNITY EMPLOYER * PHONE: 512/463-6762 FAx: 512/463-6989 http://www.rrc.state.tx.us RAILROAD COMMISSION OF TEXAS GAS UTILITIES DOCKET NO. 07-9748: ENFORCEMENT ACTION AGAINST ATMOS ENERGY CORP., MID-TEX DIVISION (OPERATOR NO. 036589/ID NO. 6776) FOR ALLEGED VIOLATION OF COMMISSION PIPELINE SAFETY RULE 49 CFR §192.703 AT IRVING UNIT 3405 OF SYSTEM 610304, IRVING, DALLAS COUNTY, TEXAS FIRST AMENDED ORIGINAL COMPLAINT Comes now the Railroad Commission of Texas ("the Commission") and files this First Amended Original Complaint charging Atmos Energy Corp., Mid-Tex Division (Operator No. 036589/ID No. 6776)) ( "Respondent") with alleged violation of Commission Pipeline Safety Rule 49 CFR § 192.703, [adopted by reference through 16 TAC §8.1], at its Irving Unit 3405 of Irving System 610304, natural gas distribution system in Dallas County, Texas, as set forth more fully below. JURISDICTION 1. The Commission has jurisdiction over this Respondent and these matters pursuant to TEX. UTIL CODE ANN. §121.201 et seq. and §121.206 et seq., and pursuant to 16 TEX. ADMIN. CODE § 8.1 et seq. Respondent is a "gas utility" as that term is defined in § 121.001 TEX. UTIL CODE and by 16 TEX. ADMIN. CODE §8.1 et seq. For the purposes of Chapter 121, Subchapter E of the Texas Utility Code, Atmos Energy Corp., Mid-Tex Division, is a person as that term is defined by 16 TEX. ADMIN. CODE § 8.5(21). The Irving Unit 3405 of Irving System 610304, is a gas pipeline facility/distribution facility as defined by 16 TEX. ADMIN. CODE §8.5(23). The Irving Unit 3405 of Irving System 610304, is the gas company of Atmos Energy Corp., Mid-Tex Division, subject to 16 TEX. ADMIN. CODE §8.5(11). Respondent is the person who is responsible for the maintenance or operation of a gas distribution facility within the State of Texas, or of the transportation of gas within the State of Texas, regulated pursuant to TEX. UTIL. CODE ANN. § 121.206, TEX. UTIL. CODE ANN. § 121.201(a)(1) and 16 TEX. ADMIN. CODE §8.1 (Tex. R.R. Comm'n, General Applicability and Standards). Respondent is not a gas pipeline facility or engaged in the transportation of gas subject to exclusive federal jurisdiction under the Natural Gas Pipeline Safety Act, 49 United States Code Annotated §§60101 et seq. As such, the Respondent is responsible for compliance with applicable statutes and Commission Statewide Pipeline Safety Rules. 2. The notice of hearing required under Commission Rule § 1.45 [16 TEX. ADMIN. CODE § 1.45], may be served on Respondent at the addresses reported most recently to the • Commission and the Secretary of State of Texas by the Respondent, (TEX.NAT. RES. CODE ANN. §91.142), by Regular and by Certified Mail, Return Receipt Requested, addressed to: Atmos Energy Corp., Mid-Tex Division, P.O. Box 223705, Dallas, TX 75222-3705. Notice may be served by regular and Certified Mail on the Registered Agent for Respondent, addressed to Corporation Service Company, Registered Agent for Atmos Energy Corp., Mid-Tex Division, 701 Brazos St., Ste 1050, Austin, TX 78701. Notice may also be served on the persons reported to the Commission and Secretary of State of Texas, to be its Chairman of the Board, President and CEO: Robert W. Best, Atmos Energy Corp., Mid-Tex Division, 5430 LBJ Freeway, Ste 1800, Dallas, TX 75240; its Senior Vice President and CFO: John P. Reddy, Atmos Energy Corp., Mid-Tex Division, 5430 LBJ Freeway, Ste 1800, Dallas, TX 75240; and its Senior Vice President, Utility Operations: Kim R. Cocklin, Atmos Energy Corp., Mid-Tex Division, 5430 LBJ Freeway, Ste 1800, Dallas, TX 75240. PIPELINE SAFETY RULE 49 CFR §192.703 1. Commission Pipeline Safety Rule § 192.703 [adopted by reference through 16 TAC § 8.1 ], provides that: "(a) No person may operate a segment of pipeline, unless it is maintained in accordance with this subpart. (b) Each segment of pipeline that becomes unsafe must be replaced, repaired, or removed from service. (c) Hazardous leaks must be repaired promptly." 2. On January 15-February 6, 2007, the Pipeline Safety Section of the Commission's Gas Services Division conducted Safety Evaluation No. 2007-0385 D on the Irving Unit 3405 gas distribution system (System ID No. 610304), owned and operated by Atmos Energy Corp., Mid-Tex Division. On March 28, 2007, the Commission issued its Final Report, Accident Investigation Report No. 07-03 85. This report describes an explosion and fire that occurred at about 10:00 A.M. on January 15, 2007, at 2824 W. Rochelle Road, a residence in Irving, Texas, when a leak at the service tap to 2824 W. Rochelle Road, allowed gas to migrate through the soil and sewer system until it found a source of ignition. There were no fatalities or injuries, although ten (10) people were evacuated from affected residences; property damage, in the amount of approximately $20,000, was limited to one section of the home at 2824 W. Rochelle Road. The investigation showed the leak was originally found September 30, 2006, and was monitored once every 30 days thereafter. On October 24, 2006, a 10% gas concentration was found; on November 20, 2006, it was 61 %; on December 15 and December 18, 2006, a 15% gas concentration was found. 3. The Commission's Report No. 07-0385, also showed bar testing of the main and service line was conducted by Atmos personnel, and gas migration was found along the main and • service line in front of 2824 W. Rochelle Road. Also, 9% gas concentrations were detected in the sewer cleanout of 2824 W. Rochelle Road, located 2' from the meter set, and 10% gas concentrations were detected in the sewer vent on the roof of 2820 W. Rochelle Road. Excavation revealed an ell leaking on the welded service tap. Excavation also revealed a corrosion leak on the main, about 30' west of the service tap. An open leak (Ref. Leak No. 367515) existed for 2824 W. Rochelle Road. 4. Records obtained from Atmos Energy Corp., indicate that the Irving distribution system has 3 maximum allowable operating pressures (MAOP), including 60psig, 55psig, and low pressure. The MAOP of the area serving the subject residence, allows 55psig; the actual operating pressure on January 15, 2007, was 47psig at 9:45 A.M. The main supplying the residence is a 4" coated steel line. No records are available to verify installation date of the main. The service line supplying the residence is a 1" bare steel service line, installed April 17, 1960. The last inspection date in Atmos' records was February 28,2006. (The leak detected on September 30, 2006, was a result of customer call on that date at 12:03 A.M.) 5. By failing to properly monitor the leak detected September 30, 2006, (to monitor the leak, a bar hole test must be performed every 5' in all directions over the main and service line until readings are zero percent), by failing to upgrade the leak from Grade 2 to Grade 1, when the periodic testing showed a changing pattern of gas migration, by failing to perform leak monitoring procedures that would have revealed the corrosion leak on the main, thirty (30') feet west of the service tap, and by failing to properly follow plans, procedures and/or programs required by Commission Gas Safety Rules, Respondent violated Commission Pipeline Safety Rule 49 CFR §192.703(c) [adopted by reference through 16 TAC §8.1] at its Irving Unit 3405 at Irving System 610304, Dallas County, Texas. Respondent's violation of Commission Pipeline Safety Rule 49 CFR §192.703(c) [adopted by reference through 16 TAC §8.1], is serious and a hazard to the public health and safety. PUBLIC HEALTH AND SAFETY Respondent's failure to comply with TEX. UTIL. CODE ANN. § 121.201 or safety standards or rules relating to the distribution of gas and gas pipeline facilities adopted under that section, is serious and constitutes a hazard to the health or safety of the public. PREVIOUS VIOLATIONS BY RESPONDENT The Respondent charged with the alleged violation herein recited has no Final Orders against it for violation of Commission rules. GOOD FAITH Respondent has acted in bad faith because it failed to timely correct alleged Commission pipeline safety rule violation and failed to adequately explain its inaction to the Commission. PRAYER WHEREFORE, PREMISES CONSIDERED, the Commission Gas Services Pipeline Safety Division, prays that notice be given and a hearing be held to consider the above-referenced alleged violation, and requests the Commission to thereafter enter an order: 1. assessing Respondent an administrative penalty of $26,000.00 ($1,000 for violation of Pipeline Safety Rule 49 CFR § 192.703(c) [adopted by reference through 16 TAC §8.1]; plus $25,000 Enhancement for Reportable Incident/Accident), or such other amount as may be established by the evidence; 2. directing Respondent to place the subject pipeline into compliance with all Commission Pipeline Safety Rules; and 3. ordering any other relief to which, under the pleadings and the evidence, the Enforcement Section may show itself entitled. Respectfully submitted, Susan German, Staff Attorney Office of General Counsel RAILROAD COMMISSION OF TEXAS State Bar No. 17424700 Telephone No. (512) 463-8589 FAX No. (512) 463-6989 P. O. Box 12967 Austin, Texas 78711-2967 Dated: December 14, 2007 CERTIFICATE OF SERVICE I hereby certify that I have served a copy of this First Amended Original Complaint, in Gas Utilities Docket No. 07-9748, on the attorney representing Respondent in this docket, by depositing same in the United States Mail, postage fully prepaid, on this the 14"' day of December, 2007, properly addressed as follows: Jon Renner, Atty for Atmos Energy Corp., Mid-Tex Div. c/o Clark, Thomas, et al. P.O. Box 1148 Austin, Tx 78767 Susan German, Staff Attorney Office of General Counsel - Enforcement Railroad Commission of Texas RAILROAD COMMISSION OF TEXAS OFFICE OF GENERAL COUNSEL THE STATE OF TEXAS COUNTY OF TRAVIS I, Kim Williamson, Secretary of the Railroad Commission of Texas, do hereby certify as the legal custodian of the records, files, and seal of the Railroad Commission of Texas that the securely attached pages (including this affidavit), under seal of the Railroad Commission of Texas, are true and correct copies of domestic public documents, which are a part of the official records on file with the Railroad Commission of Texas, pertaining to Gas Utilities Docket No. 07-9748: Enforcement Action Against Atmos Energy Corp., Mid-Tex Division (Operator No. 036589/ID No. 6776) for Violations of Commission Pipeline Safety Rule 49 CFR §192.703(c), at Irving Unit 3405 of System 610304, Dallas County, Texas GIVEN under my hand and seal of the Railroad Commission of Texas this 2007. day of Kim Williamson Secretary of the Railroad Commission of Texas Document Break I 1234 567890 1 aper Clip Binder Clip Rubber Band Folder Loose Paper Clip Binder Clip Rubber Band Folder 4. Loose Staple Paper Clip Binder Clip Rubber Band Folder 5. Loose Staple Paper Clip Binder Clip Rubber Band Folder 6. Loose Staple Paper Clip Binder Clip Rubber Band Folder 7. Loose Staple Paper Clip Binder Clip Rubber Band Folder 8. Loose Staple Paper Clip Binder Clip Rubber Band Folder 9. Loose Staple Paper Clip Binder Clip Rubber Band Folder 10. Loose Staple Paper Clip Binder Clip Rubber Band Folder MICHAEL L. WILLIAMS, CHAIRMAN VICTOR G. CARRILLO, COMMISSIONSR ELIZABETH A. JONES, COMMISSIONER RAILROAD COMMISSION Of.6 OFFICE OF GENERAL COUNSJffl November 20, 2007 Atmos Energy Corp., Mid-Tex Div. P.O. Box 223705' Dallas, TX 75222-3705 Robert W. Best, COB/Pres/CEO Atmos Energy Corp., Mid-Tex Div. 5430 LBJ Frwy, Ste 1800 Dallas, TX 75240 Corporation Service Company, R.A., for Atmos Energy Corp., Mid-Tex Div. 701 Brazos St., Ste 1050 Austin, TX 78701. John P. Reddy, Sr VP/CFO Atmos Energy Corp., Mid-Tex Div. 5430 LBJ Frwy, Ste 1800 Dallas, TX 75240 Kim R. Cocklin, Sr VP/Utility Op. Atmos Energy Corp., Mid-Tex Div. 5430 LBJ Frwy, Sto'1800 Dallas, TX 75240 RE: RAILROAD COMMISSION OF TEXAS GAS UTILITIES DOCKET NO. 07-9748: ENFORCEMENT ACTION AGAINST ATMOS ENERGY CORP., MID-TEX DIVISION (OPERATOR NO. 036589/ID NO. 6776) FOR.VIOLATION OF COMMISSION PIPELINE SAFETY RULE 49 CFR §192.703 AT IRVING UNIT 3405 OF SYSTEM 610304, IRVING, DALLAS COUNTY, TEXAS Information on file in our offices indicates that Atmos Energy Corp., Mid-Tex Division, has violated provisions of the Railroad Commission Pipeline Safety Rules, the Texas Natural Resources Code, or the Texas Water Code, as set forth more-fully in the attached Original Complaint. This letter is notice of the captioned docket pending against Atmos Energy Corp., Mid-Tex Division. According to Section 1.49 of the Commission's General Rules of Practice and Procedure [Tex. R.R. Comm'n, 16 TEX. ADMIN. CODE § 1.49] which was adopted effective April 2, 1996, you may, within 30 days of the date of service of this notice, file an answer or request a hearing to contest the allegations of the Original Complaint. The date of service of this notice is computed under Statewide Rule 1(a)(8) [Tex. R.R. Comm'n, 16 TEX. ADMIN. CODE § 3:1(a)(8), amended effective May 22, 2000. You may hire an attorney or other representative or choose to appear on, your own behalf. The Railroad Commission Enforcement Section docket file contains records and inspection reports which will be offered into evidence in this case. The file is available for inspection at any time during business hours. To arrange for inspection or copying of this file, please call Bill Drury, at (512) 463-6858. Under § 81.0531, Texas Natural..Resources Code, the Commission may assess an administrative penalty of up to $10,000.00 per day per violation. Finally, referral of the matter to the Attorney General for collection and enforcement could result in additional civil penalties, court costs, and attorneys' fees being adjudged against you. 1701 NORTH CONGRESS AVENUE TDD 800-735-2989 OR TDY 512-463-7284 * * AUSTIN, TE%AS 78711-2967 POST OFFICE Box 12967 AN-EQUAL OPPORTUNITY EMPLOYER * PHONE: 512/463-6762 FAx: 512/463-6989 http://www.rrc.state.tx.us Notice. of Opportunity for Hearing, Gas Utilities Docket No. 07-9748, Page 2 UNDER TEXAS NATURAL RESOURCES CODE SECTION 91.114, AS AMENDED JUNE 20, 2003, THE FAILURE TO PAY PENALTIES OR REIMBURSEMENT ASSESSED IN A COMMISSION FINAL ORDER, ORTO COMPLY WITH THE REMEDIAL DIRECTIVES IN THE ORDER, SHALL REQUIRE THE COMMISSION TO REFUSE PERMIT APPLICATIONS TENDERED BY ATMOS ENERGY CORP., MID-TEX DIVISION AND PERSONS WHO OWN POSITIONS OF OWNERSHIP OR CONTROL IN ATMOS ENERGY CORP., MID-TEX DIVISION, AND SHALL ALSO RESULT IN REVOCATION OF ATMOS ENERGY CORP., MID-TEX DIVISION'S AND SUCH PERSONS' RIGHT TO ENGAGE IN THE GAS DISTRIBUTION BUSINESS IN THE STATE OF TEXAS. OFFER OF SETTLEMENT If you correct the violations set forth in the Original Complaint and pay an administrative penalty of $26,000.00 ($1,000.00 plus reckless enhancement of $25,000) by December 21,2007, I will recommend that the Commission settle this case with an agreed settlement order. Checks should be made out to the "Railroad Commission of Texas" and should include the docket number on the check. When the Commission considers my recommendation, it may either accept it, reject it, or instruct me to seek a different administrative penalty. IF YOU DO NOT SETTLE THIS CASE, FILE AN ANSWER TO THE ORIGINAL COMPLAINT, REQUEST A HEARING, OR APPEAR AT THE HEARING SET, A DEFAULT FINAL ORDER MAY BE ISSUED AGAINST YOU WITHOUT FURTHER NOTICE. Susafi German, Stdff Attorney Office of General Counsel - Enforcement Railroad Commission of Texas (512) 463-8589 J 0 CERTIFICATE OF SERVICE I hereby certify that I have served a copy of this Notice of Opportunity for Hearing, together with a copy of the Original Complaint, in Gas Utilities Docket No. 07-9748, on the persons named below by depositing same in the United States Mail, Certified Return Receipt Requested postage fully prepaid, on this the 20`h day of November, 2007, properly addressed as follows: Atmos Energy Corp., Mid-Tex Div. P.O. Box 223705 Dallas, TX 75222-3705 CERT. MAIL No. 7006 0810 0000 4587 7270 Robert W. Best, COB/Pres/CEO Atmos Energy Corp., Mid-Tex Div. 5430 LBJ Frwy, Ste. 1800 Dallas, TX 75240 CERT. MAIL No. 7006 0810 0000 4587 7300 Corporation Service Company, R.A.for Atmos Energy Corp., Mid-Tex Div. 701 Brazos St., Ste 1050 John P. Reddy, Sr VP/CFO Atmos Energy Corp., Mid-Tex Div. 5430 LBJ Frwy, Ste 1800 Dallas, TX 75240 Austin, TX 78701 CERT. MAIL No. 7006 0810 0000 4587 7287 CERT. MAIL No. 7006 0810 0000 4587 7331 Kim R. Cocklin, Sr VP/Utility Op. Atmos Energy Corp., Mid-Tex Div. 5430 LBJ Frwy, Ste 1800 Dallas, TX 75240 CERT. MAIL NO. 7006 0810 0000 4587 7294 I hereby certify that I have served a copy of this Notice of Opportunity for Hearing, together with a copy of the Original Complaint in Gas Utilities Docket No. 07-9748, on the persons named below by depositing same in the United States Mail, first-class postage fully prepaid, on this the 20`h day of November, 2007, properly addressed as follows: Atmos Energy Corp., Mid-Tex Div P.O. Box 223705 Robert W. Best, COB/Pres/CEO Atmos Energy Corp., Mid-Tex Div. 5430 LBJ Freeway, Ste 1800 Dallas, TX 75240 Dallas, TX 75222-3705 Corporation Service Company, R.A.for Atmos Energy Corp., Mid-Tex Div. 701 Brazos St., Ste 1050 John P. Reddy, Sr VP/CFO Atmos Energy Corp., Mid-Tex Div. 5430 LBJ Freeway, Ste 1800 Dallas, TX 75240 Austin, TX 78701 Kim R. Cocklin, Sr VP/Utility Op. Atmos Energy Corp., Mid-Tex Div. 5430 LBJ Frwy, Ste 1800 Dallas, TX 75240 Mary McDaniel - Austin Angie Sambrano - Austin Bill Drury, Legal Assistant Office of General Counsel - Enforcement Railroad Commission of Texas 1 (512) 463-6858 RAILROAD COMMISSION OF TEX ^S GAS UTILITIES DOCKET NO. 07-9748: ENFORCEME ^,^^TIOR *1; AINST ATMOS ENERGY CORP., MID-TEX DIVISION ( OPERATO' `^.1.^...6589/Il}'N . 6776) 192703 AT FOR VIOLATION OF COMMISSION PIPELINE SAFETY RU^^^^^r, ^ EXAS IRVING UNIT 3405 OF SYSTEM 610304, IRVING, DALLAS C,(^^ ORIGINAL COMPLAINT Comes now the Railroad Commission of Texas ("the Commission") and files this Original Complaint charging Atmos Energy Corp., Mid-Tex Division (Operator No. 036589/ID No. 6776)) ("Respondent") with violation of Commission Pipeline Safety Rule 49 CFR § 192.703, [adopted by reference through 16 TAC §8.1], at its Irving Unit 3405 of Irving System 610304, natural gas distribution system in Dallas County, Texas, as set forth more fully below. JURISDICTION 1. The Commission has jurisdiction over this Respondent and these matters pursuant to TEX. UTIL CODE ANN. § 121.201 et seq. and § 121.206 et seq., and pursuant to 16 TEX. ADMIN. CODE §8.1 et seq. Respondent is a "gas utility" as that term is defined in § 121.001 TEX. UTIL CODE and by 16 TEX. ADMIN. CODE §8.1 et seq. For the purposes of Chapter 121, Subchapter E of the Texas Utility Code, Atmos Energy Corp., Mid-Tex Division, is a person as that term is defined by 16 TEX. ADMIN. CODE §8.5(21). The Irving Unit 3405 of Irving System 610304, is a gas pipeline facility/distribution facility as defined by 16 TEX. ADMIN. CODE §8.5(23). The Irving Unit 3405 of Irving System 610304, is the gas company of Atmos Energy Corp.; Mid-Tex Division, subject to 16 TEX. ADMIN. CODE §8.5(11). Respondent is the person who is.responsible for the maintenance or operation of a gas distribution facility within the State of Texas, or of the transportation of gas within the State of Texas, regulated pursuant to TEX. UTIL, CODE ANN. § 121.206, TEX. UTIL. CODE ANN. § 121.201(a)(1) and 16 TEX. ADMIN. CODE §8.1 (Tex. R.R. Comm'n, General Applicability and Standards). Respondent is not a gas pipeline facility or engaged in the transportation of gas subject to exclusive federal jurisdiotion under the Natural Gas Pipeline Safety Act, 49 United States Code Annotated §§60101 et seq. As such, the Respondent is responsible for compliance with applicable statutes and Commission Statewide Pipeline Safety Rules. 2. The notice of hearing required under Commission Rule § 1.45 [16 TEX. ADMIN. CODE § 1.45], may be served on Respondent at the addresses reported most recently to the Commission and the Secretary of State of Texas by the Respondent, (TEX.NAT. RES. CODE ANN. §91.142), by Regular and by Certified Mail, Return Receipt Requested, addressed to: Atmos Energy Corp., Mid-Tex Division, P.O. Box 223705, Dallas, TX 75222-3705. Notice may be served by regular and Certified Mail on the Registered Agent for Respondent, addressed to Corporation Service Company, Registered Agent for Atmos Energy Corp., Mid-Tex Division, 701 Brazos St., Ste 1050, Austin, TX 78701. Notice may also be served on the persons reported to the Commission and Secretary of State of Texas, to be its Chairman of the Board, President and CEO: Robert W. Best, Atmos Energy Corp., Mid-Tex Division, 5430 LBJ Freeway, Ste 1800, Dallas, TX 75240; its Senior Vice President and CFO: John P. Reddy, Atmos Energy Corp., Mid-Tex Division, 5430 LBJ Freeway, Ste 1800, Dallas, TX 75240; and its Senior Vice President, Utility Operations: Kim R. Cocklin, Atmos Energy Corp., Mid-Tex Division, 5430 LBJ Freeway, Ste 1800, Dallas, TX 75240. PIPELINE SAFETY RULE 49 CFR §192.703 1. Commission Pipeline Safety Rule § 192.703 [adopted by reference through 16 TAC §8.1], provides that: "(a) No person may operate a segment of pipeline, unless it is maintained in accordance with this subpart. (b) Each segment of pipeline that becomes unsafe must be replaced, repaired, or removed from service. (c) Hazardous leaks must be repaired promptly." 2. On,January 15-February 6, 2007, the Pipeline Safety Section of the Commission's Gas Services Division conducted Safety Evaluation No. 2007-0385 D on the Irving Unit 3405 gas distribution system (System ID No. 610304), owned and operated by Atmos Energy Corp., Mid-Tex Division. On March 28, 2007, the Commission issued its Final Report, Accident Investigation Report No. 07-0385. This report describes an explosion and fire that occurred at about 10:00 A.M. on January 15, 2007, at 2824 W. Rochelle Road, a residence in Irving, Texas, when a leak at the service tap to 2824 W. Rochelle Road, allowed gas to migrate through the soil and sewer system until it found a source of ignition. There were no fatalities•or injuries, although ten (10) people were evacuated from affeoted residences; property damage, in the amount of approximately $20,000, was limited to one section of the home at 2824 W. Rochelle Road. The investigation showed the leak was originally found September 30, 2006, and was monitored once every 30 days thereafter. On October 24, 2006, a 10% gas concentration was found; on November 20, 2006, it was 61 %; on December 15 and December 18, 2006, a 15% gas concentration was found. 3. The Commission's Report No. 07-0385, also showed bar testing of the main and service line was conducted by Atmos personnel, and gas migration was found along the main and service line in front of 2824 W. Rochelle Road. Also, 9% gas concentrations were detected in the sewer cleanout of 2824 W. Rochelle Road, located 2' from the meter set, and 10% gas concentrations t • were detected in the sewer vent on the roof of 2820 W. Rochelle Road. Excavation revealed an ell leaking on the welded service tap. Excavation also revealed a corrosion leak on the main, about 30' West of the service tap. An open leak (Ref. Leak No., 367515) existed for 2824 W. Rochelle Road. 4. Records obtained from Atmos Energy Corp., indicate that the Irving distribution system has 3 maximum allowable operating pressures (MAOP), including 60psig, 55psig, and low pressure. The MAOP of the area serving the subject residence, allows 55psig; the actual operating pressure on January 15, 2007, was 47psig at 9:45 A.M. The main supplying the residence is a 4" coated steel line. No records are available to verify installation date of the main. The service line supplying the residence is a 1" bare steel service line, installed April 17, 1960. The last inspection date in Atmos' records was February 28,2006. (The leak detected on September 30, 2006, was a result of customer call on that date at 12:03 A.M.) 5. By failing to properly monitor the leak detected September 30, 2006, (to monitor the leak, a bar hole test must be performed every 5' in all directions over the main and service line until readings are zero percent), by failing to upgrade the leak from Grade 2 to Grade 1, when the periodic testing showed a changing pattern of gas migration, by failing to perform leak monitoring procedures that would have revealed the corrosion leak on the main, thirty (30') feet west of the service tap, and by failing to properly follow plans, procedures and/or programs required by Commission Gas Safety Rules, Respondent violated Commission Pipeline Safety Rule 49 CFR §192.703(c) [adopted by reference through 16 TAC §8.1] at its Irving Unit 3405 at Irving System 610304, Dallas County, Texas. Respondent's violation of Commission Pipeline Safety Rule 49 CFR § 192.703(c) [adopted by reference through 16 TAC §8.1], is serious and a hazard to the public health and safety. PUBLIC HEALTH AND SAFETY Respondent's failure to comply with TEX. UTIL. CODE ANN. § 121.201 or safety standards or rules relating to the distribution of gas and gas pipeline facilities adopted under that section, is serious and constitutes a hazard to the health or safety of the public. PREVIOUS VIOLATIONS BY RESPONDENT The Respondent charged with the violation herein recited has no Final Orders against it for violation of Commission rules, GOOD FAITH Respondent has acted in bad faith because it failed to timely correct Commission pipeline safety rule violation and failed to adequately explain its inaction to the Commission. i 0 PRAYER WHEREFORE, PREMISES CONSIDERED, the Commission Gas Services Pipeline Safety Division, prays that notice be given and a hearing be held to consider the above-referenced violation, and requests the Commission to thereafter enter an order: 1. assessing Respondent an administrative penalty of $26,000.00 ($1,000 for violation of Pipeline Safety Rule 49 CFR § 192.703(c) [adopted by reference through 16 TAC §8.1]; plus $25,000 for Reckless Enhancement), or such other amount as may be established by the evidence; 2. directing Respondent to place the subject pipeline into compliance with all Commission Pipeline Safety Rules; and 3. ordering any other relief to which, under the pleadings and the evidence, the Enforcement Section may show itself entitled. Respectfully submitted, t4A- Susan German, Sthff Attorney Office of General Counsel RAILROAD COMMISSION OF TEXAS State Bar No. 17424700 Telephone No. (512) 463-8589 FAX No. (512) 463-6989 P. O. Box 12967 Austin, Texas '78711-2967 Dated: November 20, 2007 cc: Mary McDaniel - Austin Angie Sambrano - Austin NAME AND ADDRESS OF SENDER OFFICE OF GENERAL COUNSEL - ENFORCEMENT RAILROAD COMMISSION OF TEXAS P.O. DRAWER 12967 AUSTIN, TX 78711-2967 CERTIFIED ARTICLE NUMBER OF ARTICLE NAME OF ADDRESSEE 1 7006 0810 0000 4587 7270 Atmos Energy Corp Mid Tex Div P 0 Box 223705 Dallas TX 75222-3705 2 TYPE OF MAILGUD 07-9748 7006 0810 0000 4587 7287 Corporation Service Corp Atmos Energy Corp Mid Tex Div 701 Brazos St Ste 1050 Austin TX 78701 POSTAGE FEE R.R. FEE REMARKS GUD 07-9748 SAG 12/21/07 a ^ f 1 \Y ` GUD 07-9748 SAG 12/21/07 3 7006 0810 0000 4587 7294 Kim R Cocklin Atmos Energy Corp Mid Tex Div 5430 LBJ Frwy Ste 1800 Dallas TX 75240 GUD 07-9748 SAG 12/21/07 4 7006 0810 0000 4587 7300 Robert W Best Atmos Energy Corp Mid Tex Div 5430 LBJ Frwy Ste 1800 Dallas TX 75240 GUD 07-9748 SAG 12/21/07 5 7006 0810 0000 4587 7331 TOTAL NUMBER OF PIECES LISTED BY TOTAL NUMBER OF PIECES RECEIVED BY ,.S.,ENDER POS,, - 5 John P Reddy Atmos Energy Corp Mid Tex Div 5430 LBJ Frwy Ste 1800 Dallas TX 75240 POSTMASTER, PER (NAME OF RECEIVING EMPLOYEE) b GUD 07-9748 SAG 12/21%07 ^' CJ+ The full declaration of valueis required on all domestic and international mail registered mail. The maximum idemnity payable for the reconstruction of nonnegotiable documents under Express Mail documemreconstructioninsuranceis $500 per piece subject to additional limitations for multiple pieces lost or damages in a single catastropluc occurrence. The maximum idemnity payable on Express Mail merchandise insurance is $500, but optional Express Mail Service merchandise insurance is available for up to $5,000 to some, but not all countries. The maximum idemnity payable is $25,000 for registered mail. See Domestic Mail Manual R900, S913, and S921 for limitations of coverage on insured and COD mail. See Inlernatiatal Mail Mmnmal for limitations of coverage on international mail. Special handling charges apply only to Standard Mail (A) and Standard Mail (B) parcels. UNITED STATES POSTAL SERVICE First-Class Mai, , Postage & Fees Paid USPS Permit No. G-10 • Sender: Please print your name, address, and ZIP+4 in this box • RAILROAD COMMISSION OF r Enforcement Section - Office of G EXA^' P.O. Box 12967 ^^^CounSe^ Alstin,lX 78711-2967 i J Iil,I ilI jiliF „LIlil,F^';^il Iilnli}t ^ ,r tr,: COMPLETE THIS SECTION ON DELIVERY ' SE^^: COMPLETE THIS SECTION ■ Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. ■ Print your name and address on the reverse so that we can return the card to you. ■ Attach this card to the back of the mailpiece, or on-the front if space permits. A. Signature ❑ Agent ❑ Addressee ' X B. Recei f Delivery by{Pnni SA Vertrees 1- D. Is deiivery-address different from item 17 If YES, enterdeliverv address below: 1. Article Addressed to: Corporation Service Corp Atmos Energy Corp Mid Tex Div 701 Brazos St Ste 1050 Austin TX 78701 rG ❑ Yes ❑ No 7006 0810 0000 4587 7287 Certified SAG GUD 07-974812/21/07 ❑ Registered ❑ Insured Mail Mail ❑ Return Receipt for Merchandise ❑ C.O.D. 4. Restricted Delivery? (Extra Fee) Number 2, t (Traisferfrom servQ ❑ Yes 7006 0810 0000 4587 7287 PS Form 3811, February 2004 Domestic Return Receipt 102595-02-M-1540 ,• ^D STATES POSTAL SERVICE First-Class Ma Postage & Fees raid USPS N O } ir ❑ Permit No. G-10 -^-,, N O • Sender: Please print your name, address, anif.ZtP+4 in'this 150x • Cr ru RAILROAD COMMISSION OF Enforcement Section - Office of General CoVW, F- r-' P.0. Box 12967 Austin, TX 7E711-2967 N CD Ln HHI STATES POSTAL SERVICE O 0 N ?_1 -Q First-Class Mali Postage & Fees Paid USPS Permit No. G-10 Sender: Please print your name, address, and ZIP+4 in this box • a E z -- a RAILROAD COMMISSION T ✓ Enforcement Section - Office of Ge ^ aEXA i P.O. Box 12967 Austin, TX 78711-2967 r-, r,.: SEIIIIIIIIIIIIIIIIIII[i: COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY- ■ Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. ■ Print your name and address on the reverse so that we can return the card to you. ■ Attach this card to the back of the mailpiece, or on the front if space permits. A. Signature 1.. Article Addressed to: Robert W Best Atmos Energy Corp Mid Tex Div 5430 LBJ Frwy Ste 1800 Dallas TX 75240 ❑ Agent ❑ ddressee !^a of 7very VReceived by ( Printed Name) D. Is delivery address different from item 1? If YES, enter delivery address below: ❑ Insured Mail Number er from servlce (abeo PS Form 3811, February 2004 ❑ No Certified s Mail Receipt for Merchandise ❑ C.O.D. 4. Restricted Delivery? (Extra Fee) (,. 7 7006 0810 0000 4587 7300 SAG GUD 07-974812/21/07 2. R ❑Y ❑ 'Yes 7006 0810 01300 4587 7300 Domestic I^ieturn Receipt 102595"02-M-1540 UNITED STATES POSTAL SERVICE First-Class •Ma`. t Postage & Fees. did USPS Permit No. G-10 Sender: Please print your name, address, and ZIP+4 in this box • } ❑ C ..` ^-. RAILROAD COMMISSION OF T8XAS_' Enforcement Section - Office of General Ca^rtSel; P.O. Box 12967 Austin, TX 7E711-2967 ^ m m rv N c.-•: ^t; N co Lr1 -r 11111 I111 J}li{111111117F1}1 Fli1L/Fi111F}1)(1 11 n}i!}tirJJi11 CI a rO 0 >TATES POSTAL SERVICE First-Class Ma, Postage & Fees raid USPS Permit No. G-10 ^ O O r`- N Sender: Please print your name, address, and ZIP+4 in this box • W L li .^ i Tf, LL , T 00 C^) E N CO a RAILR®AD , r.t i^^ ^O^r^tAlSSION O#'t,^XAS , , Enforcement Section - Office of Geplrrai.^ ounsel P.O. Box 12967 ^austin, TX 787112967 r, ^;:^ CJ ^.^ COMPLETE THIS SECTION ON DELIVERY SEW: COMPLETE THIS SECTION ■ Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired . r Print your name and address on the revers^i.^ .,o that we can return the card to you. ■ Attach this card to the back of the mailpiece, or on the front if space permits. 1. ArticleAddressed to: B. ReFeived by Pnnie 1 Atmos Energy Corp Mid Tex Div P 0 Box 223705 Dallas TX 75222-3705 t,I D. Is delivery-address di erent from item 17 If YES, enter delivery address below: 7006 0810 0000 4587 7270 Certified SAG GUD 07-974812/21/07 C] Insured Mafl Vlail aceipt for Merchandise ❑ C.O.D. 4. Restricted Delivery? (Extra Fee) 2. P 6 Number er from servJce IabeQ PS Form 3811, February 2004 ❑ Yes ❑ No ❑ Yes 7006 0810 0000 4587 7270 Domestic Return Receipt 102595-02-M-1540? U.S. Postal ServiceTM a r_ ru r- CERTIFIED MAIL TM U.S. Postal ServiceTM CERTIFIED MAILTM RECEIPT RECEIPT (Domestic Mail Only, No Insurance Coverage Provided) (Domestic MaiPOnly; No Insurance Coverage Provided) For delivery information visit our website at www.usps.corte For delivery information visit our website at www.usps.com® Return¢teceipt Fee (Endorsement Required) Return Receiptfee (Endorsement Required) Restricted Delivery Fee (Endorsement Requdred) Restricted Delivery Fee (Endorsement Required) Sent To Sent To - ° Apt. No.;--------------------------------------°--------------------------°---Street, or PO Box No. -----• --, -- -- -- ------------•--°--•----•-------•^-•---------•-----------------•-----City, S--tate Z/P+4 PS Form 3800, June 2002 SQe Reverse for Ir;structions^ U.S. Postal ServiceTM CERTIFIED MAILTM RECEIPT Postmark Here -Street, ------------Apt. No.• ;°------------••------------------------------------------....----°---or PO Box No. City, State, Z/P+4 -------------------------------- ------- -----------°.°....°-----•-• PS Form 3800, June 2002 See Reverse for Instructions U.S. Postal ServiceTM -CERTIFIED -MAIL (Domestic Mail Only; No Insurance Coverage Provided) TM - RECEIPT (Domestic Mail Only, No Insurance Coverage Provided) Return Receipt Fee (Endorsement Required) Return Receipt Fee (Endorsement Required) Restricted Delivery Fee (Endorsement Required) Postmark Here Restricted Delivery Fee (Endorsement Required) Sent To SentTo irreet, Apf. No; ^^PO Box No. ° °-°°°...°.°°°•°•°.°°° -°-°------ -°-°°---°° ', State ZIP+4 m 3800, June 2002 Sfriet, Apf. No.;----------------------------------------------------------------or PO Box No. -° -°St ----- ---°. ° City, ate, Z/P+4 ---------------------------------------------- --.....-------- See'Reverse for9,nstructi6ns PS Form 3800, June 2002 U.S. Postal ServiceTM CERTIFIED MAIL RECEIPT TM (Domestic Mail Only; No Insurance Coverage Provided) Return Receipt Fee (Endorsement Required) Postmark Here Restdcted Detivery Fee (Endorsement Required) Sent To ----°---°-----------°----°------°-°------------•-------------------------------Street; ApG No.; or PO Box No. -Ciry, ° ZIP+4 - State, °--°--- °°°° --- ------------------------------------------- •-.--• PS Form 3800, June 2002 • See Reverse for Instructions See Reverse for Instructions NAME AND ADDRESS OF SENDER OFFICE OF GENERAL COUNSEL - ENFORCEMENT RAILROAD COMMISSION OF TEXAS P.O. DRAWER 12967 AUSTIN, TX 78711-2967 ARTICLE NUMBER OF ARTICLE 1 7006 0810 0000 4587 7270 2 NAME OF ADDRESSEE ^1^\^•^ 7006 0810 0000 4587 7287 \\\^^\ 3 7006 0810 0000 4587 7294 4 Atmos Energy Corp Mid Tex Div P 0 Box 223705 Dallas TX 75222-3705 Corporation Service Corp Atmos Energy Corp Mid Tex Div 701 Brazos St Ste 1050 Austin TX 78701 TYPE OF MAILGUD 07-9748 CERTIFIED POSTAGE FEE R.R. FEE GUD 07-9748 SAG 12/21/07 7 ` t-") ^f^ GUD 07-9748 SAG 12/21/07 Kim R Cocklin Atmos Energy Corp Mid Tex Div 5430 LBJ Frwy Ste 1800 Dallas TX 75240 7006 0810 0000 4587 7300 Robert W Best Atmos Energy Corp Mid Tex Div 5430 LBJ Frwy Ste 1800 Dallas TX 75240 REMARKS GUD 07-9748 SAG 12/21/07 ^.' GUD 07-9748 SAG 12/21/07 ^ ^b 1 5 7006 0810 0000 4587 7331 TOTAL NUMBER OF PIECES LISTED BY SENDER 5 ^^tt'1 V k^ ^ John P Reddy Atmos Energy Corp Mid Tex Div 5430 LBJ Frwy Ste 1800 Dallas TX 75240 TOTAL NUMBER OF PIECES RECEIVED BY POST OFFICE POSTMASTER, PER (NAME OF RECEIVING EMPLOYEE) y ^ mti GUD 07-9748 SAG 12/21/07 The full declaration ofvalueis required on all domestic and international mail registered mail. The maximum idemnity payable for the reconstruction of nonnegotiabledocumentsunderExpressMaildocumentreconsttuctioninsutanceis $500 per piece subject to additional limitations for multiple pieces lost or damages in a single catasVophic occurrence. The maximum idemnity payable on Express Mail merchandise insurance is $500, but optional Express Mail Service merchandise insurance is available for up to $5,000 to some, but not all countries. The maximum idemnity payable is 525,000 for registered mail. See Domestic MaiJMamral R900, S913, and S921 for limitations of coverage on insured and COD mail. See InlernatiawlMai[Manual for limitations ofcoverage on international mail. Special handling charges apply only to Standard Mail (A) and Standard Mail (B) parcels. 16:35:54 Thu Sep 13, 2007 ORMQ MASTER INQUIRY NON-COMPLIANT: TAX CERT Y P-5 STATUS: ACTIVE OPT3 11/16/2006 OPERATOR NUMBER 036589 P-5 REFILING REQUIRED ORG NAME REFILE NOTICE MONTH DECEMBER ATMOS ENERGY CORP., MID-TEX DIV. ORGANIZATION ADDRESS LOCATION ADDRESS TEL VERIFY: NO P 0 BOX 223705 5420 LBJ FREEWAY STE 1800 DALLAS TX DALLAS TX 75222 75240 ORGANIZATION CODE CORPORATION GATHERER CODE STAT N IF OTHER REF TO OTHER OPR # 036591 PHONE # (214) 206-2809 EMER # DATE BUILT 12/07/2004 REFILE LETTER TYPE PROPERTY DATE INACTIVE REFILE LETTER DATE REFILE RECEIVED DATE 09/07/2007 DISCREPANCY LTR DATE LAST P-5 FILED DATE 11/16/2006 CD SPECIALTY/ACTIVITY CODES: DRLPMT GASNOM GASPUR PIPE-C XCONTL G/PUR : 01 02 03 05 06 7B 7C 08 8A 09 ENTER - P-5 ORGANIZATION INFORMATION INQUIRY MENU PF2 - OFFICER/AGENT INQUIRY PF3 - ADDRESS INQUIRY FOR AN ORGANIZATION PF4 - SCROLL BACKWARD PF7 - SB639 COMPL PF8 - RESTART PF6 - OPT-3 COMPL PF9 - FINANCIAL ASSURANCE CLEAR - TERMINATE PROCESSING. **** REMARKS EXIST FOR THIS ORGANIZATION. HIT PF1 TO GO TO "REMARKS INQUIRY" 16:36:00 Thu Sep 13, 2007 OROQ OFANW /AGENT INQUIRY SELECTION S OPERATOR NUMBER: 036589 ORGANIZATION NAME: ATMOS ENERGY CORP., MID-TEX DIV. *** ADDITIONAL OFFICER INFORMATION ON FILE *** AGENT: CORPORATION SERVICE COMPANY TITLE: RESIDENT TEXAS AGENT OFFICER: BEST, ROBERT W. TITLE: COB/PRES./CEO _ * PRIMARY * REDDY, JOHN P. TITLE: SR. VICE-PRES./CFO COCKLIN, KIM R. TITLE: SR.VICE-PRES.,UT•ILITY OPERATIONS VALID KEYS: ENTER PF1 PF2 PF4 PF5 - - PROCESS SELECTION - GO TO MASTER INQUIRY - GO TO REMARKS INQUIRY RESTART SCROLL OFFICERS CLEAR - TERMINATE INQUIRY 16:36:06 Thu Sep 13, 2007 ORNI 0 AGENT INQUIRY OPERATOR NUMBER: NAME: TITLE: 036589 ORGANIZATION NAME: ATMOS ENERGY CORP., MID-TEX DIV. CORPORATION SERVICE COMPANY RESIDENT TEXAS AGENT STREET ADDRESS: 701 BRAZOS STE 1050 AUSTIN TX 78701 254007 MAILING ADDRESS: 000000 PF1: GO PF2: GO PF3: GO PF6: GO ENTER: CLEAR: TO "MASTER INQUIRY" SCREEN TO INQUIRY MENU SCREEN TO OFFICER/AGENT INQUIRY SELECTION SCREEN TO OFFICER NAME INQUIRY SCREEN GO TO.FIRST OFFICER TERMINATE PROCESSING 16:36:18 Thu Sep 13, 2007 OROI OFFICER INQUIRY OPERATOR NUMBER: NAME: TITLE: 036589 ORGANIZATION NAME: BEST, ROBERT W. COB/PRES./CEO STREET ADDRESS: 01 OF 101 ATMOS ENERGY CORP., MID-TEX DIV. * PRIMARY * 5430 LBJ FRWY STE 1800 DALLAS TX 75240 254008 MAILING ADDRESS: 000000 TYPE ID: DRIVERS LICENSE PF1: PF2: PF4: PF6: GO GO GO GO STATE: NUMBER: TX TEXAS ON FILE TO "MASTER INQUIRY" SCREEN CLEAR: TERMINATE PROCESSING TO INQUIRY MENU-SCREEN PF3: GO TO OFFICER/AGENT SELECTION SCREEN TO REMARKS INQUIRY ( ORGANIZATION HAS REMARKS) TO OFFICER NAME INQUIRY SCREEN 16:36:35 Thu Sep 13, 2007 OROI % OFFICER INQUIRY OPERATOR NUMBER: NAME: TITLE: 036589 ORGANIZATION NAME: 02 OF 0 ATMOS ENERGY CORP., MID-TEX DIV. REDDY, JOHN P. SR. VICE-PRES./CFO STREET ADDRESS: 5430 LBJ FRWY STE 1800 DALLAS TX 75240 254009 MAILING ADDRESS: 000000 TYPE ID: DRIVERS LICENSE PF1: PF2: PF4: PFG: GO GO GO GO TO TO TO TO "MASTER INQUIRY REMARKS OFFICER STATE: NUMBER: TX TEXAS ON FILE INQUIRY" SCREEN CLEAR: TERMINATE PROCESSING MENU SCREEN PF3: GO TO OFFICER/AGENT SELECTION SCREEN INQUIRY ( ORGANIZATION HAS REMARKS) NAME INQUIRY SCREEN 16:36:45 Thu Sep 13, 2007 OROI 0 OPERATOR NUMBER: NAME: TITLE: 036589 OFFICER INQUIRY ORGANIZATION NAME: 03 OF 00 ATMOS ENERGY CORP., MID-TEX DIV. COCKLIN, KIM R. SR.VICE-PRES.,UTILITY OPERATIONS STREET ADDRESS: 5430 LBJ FRWY STE 1800 DALLAS TX 75240 254010 MAILING ADDRESS: 000000 TYPE ID: DRIVERS LICENSE PF1: PF2: PF4: PF6: GO GO GO GO TO TO TO TO "MASTER INQUIRY REMARKS OFFICER STATE: NUMBER: NC NORTH CAROLINA ON FILE INQUIRY" SCREEN CLEAR: TERMINATE PROCESSING MENU SCREEN PF3: GO TO OFFICER/AGENT SELECTION SCREEN INQUIRY ( ORGANIZATION HAS REMARKS) NAME INQUIRY SCREEN ELIZABETH A. JONES, CHAIRMAN MICHAEL L. WILLIAMS, COMMISSIONER VICTOR G. CARRILLO, COMMISSIONER MARY L. MCDANIEL, P. E. DIRECTOR SAFETY DIVISION RAILROAD COMMISSION OF TEXAS SAFETY DIVISION August 09, 2007 Ms. Patti Richards V. P. Technical Services ATMOS ENERGY CORP., MID-TEX DIVISION P. 0. Box 223705 Dallas, TX 75222-3705 Re: Pipeline Safety Evaluation No(s): 2007-0385D' ATMOS ENERGY/IRVING (All correspondence must include the Evaluation No.) Dear Ms. Patti Richards: We have received your letter of June 11, 2007 outlining the action you intend to take in correcting the alleged violation(s) found during the above-referenced evaluation(s). After reviewing your correction plan, our staff has determined that the plan and time schedule appear to be sufficient. According to your schedule, all discrepancies cited will be corrected by July 31, 2007. Notify this office by September 13, 2007 that all violation(s) were corrected as scheduled. Please notify us if schedule slippage occurs. If you have questions please contact the appropriate regional office identified in the enclosed memo. 1701 NORTH CONGRESS AVENUE * POST OFFICE BOX 12967 * AUSTIN, TEXAS 78711-2967 * PHONE (512) 463-7058 FAX (512) 463-7319 TDD (800) 735-2989 OR TDY (512) 463-7284 AN EQUAL OPPORTUNITY EMPLOYER ELIZABETH A. JONES, CHAIRMAN MICHAEL L. WILLIAMS, COMMISSIONER VICTOR G. CARRILLO, COMMISSIONER MARY L. MCDANIEL, P. E. DIRECTOR SAFETY DIVISION RAILROAD COMMISSION OF TEXAS SAFETY DIVISION May 04, 2007 Ms. Patti Richards V. P. Technical Services ATMOS ENERGY CORP., MID-TEX DIVISION P. 0. Box 223705 Dallas, TX 75222-3705 Re: Pipeline Safety Evaluation No(s): 2007-0385DATMOS ENERGY/IRVING (All correspondence must include the Evaluation No.) Dear Ms. Patti Richards: Recently, an incident, complaint, or other condition required our staff to conduct an investigation of pipeline facilities operated by your company. The facilities and the subject of the investigation are identified in the attached Safety Evaluation Summary. Investigations are conducted in accordance with pipeline safety requirements of the Texas Utilities Code, Section 121.201 for natural and other gas pipeline facilities and TEX. NAT. RES. CODE, Sections 117.001 AND 117.011 (Vernon Supp. 2002) for hazardous liquid pipeline facilities. During the investigation, selected physical conditions, written procedures, and records were reviewed. At the time of this investigation, alleged violations of the minimum safety standards were found and are detailed in the correspondence. Action should begin immediately to correct the listed violation(s) and submit to•this office a schedule and correction plan. The correction plan should be an item-by-item explanation of exactly how and by what exact date each individual violation will be corrected. The date specified in the Safety Evaluation Summary is the date we should receive your plan, not the date you are to have the alleged violation(s) corrected. Our staff will review the plan for compliance with the safety requirements. 1701 NORTH CONGRESS AVENUE * POST OFFICE BOX 12967 * AUSTIN, TEXAS 78711-2967 * PHONE (512) 463-7058 FAX (512) 463-7319 TDD (800) 735-2989 OR TDY (512) 463-7284 AN EQUAL OPPORTUNITY EMPLOYER May 04, 2007 Page 2 It is your responsibility to take action, not only to correct the specific deficiencies listed in the attachment, but also to recognize and correct any other conditions which do not meet the minimum safety standards. If you have any questions, do not hesitate to contact the Pipeline Safety Staff at the phone numbers listed in the Safety Evaluation Summary. Sincerely, ^ ^ ary^. Dirlhctor Enclosure: Safety Evaluation Summary Alleged Violation List cDan 1, P. E. • S Company - Unit Data Make changes/corrections in the boxes with dotted borders company company_id: name: representative: title: address1: 6776 ATMOS ENERGY CORP., MID-TEX DIVISION --------- _ - ------------------- ------ -- ----------------------- :. ...... . ---------------------------------- - -----Charles R. Yarbrough, II ,. -------._- .. Vice President 5420 LBJ Freeway, Ste, 1800 address2: town, state, zip: Dallas, TX 75240-0000 phone: (214) 206 - 2809 24hr phone: (800) 249 - 9406 fax: ✓ ^......-... ---.. ,......... ..............._ --- 2148753936 unit unit id: name: representative: title: address1: 3405 ATMOS ENERGY/IRVING - - - - - - - - - - - - - - -------_--------------.-.. -------------------------- -----Mr- Keith Elliott S & C Supervisor 100 W. Morningside Drive address2: town, state, zip: Fort Worth, TX 75061-0000 phone: 8008178090 24hr phone: 8005346241 3/29/2007 ----------------------------------------------------------------- ------.......-. ✓ '-------- ------- ---------- - -- - •--------.._... - - - ----..._.. -- --- --_... --------------=------------------------------ -------------------------- - -------- ------'------------•----------- --------- - ----...... . Page 1 of 1 ALLEGED VIOLATION NOTES: NATURAL GAS DISTRIBUTION AND TRANSMISSION PIPELINES EVALUATION No: Item No 07-0385 DESCRIPTION OF ALLEGED VIOLATION ❑ Cathodic Protection ❑ Regulator Station ® Other Hazardous Leak Discrepancy: ❑ Left copy with operator during evaluation. ❑ Mailed copy to Operator on (date): DATE: 03/28/07 SYSTEM: IRVING ❑ Line Marker ❑ Section Valve LOCATION/IDENTIFICATION No. ❑ Odorization ❑ Relief Device Leak No. 394541 2824 W. Rochelle Rd. COMMENT/DATA The listed open leak was found on 9/30/06 and classified as a Grade 2 leak. The leak was monitored 10/24/06 -10% gas detected, 11/20/06-61% gas detected , 12/15/06-15% gas detected, and 12/18/06-15% gas detected. Gas from this leak migrated through the soil and into the sewer system and found an ignition . source. The one area of concern would be the open Leak No. 394541 at 2824 W. Rochelle the incident site. Leak monitoring procedures come into question. To monitor the leak, a bar hole test must be performed every five feet -in all directions over the main and service line until readings are zero percent. The gas migration pattern changed and the leak was never upgraded to a Grade 1 leak, until after the incident occurred. Also, if leak monitoring procedures were performed the corrosion leak on the main 30 feet west of the service tap could have been discovered prior to the incident. Questions also arise to the leak monitor dates of 12/15/06 with 15% gas concentrations detected and then monitored again three days later on 12/18/06 with 15% gas concentrations detected. If the leak had not been monitored on 12/18/06, then the leak would have been due to monitor on or before 01/15/07, the date of the incident. Atmos supervision could not explain why the leak monitor technician would monitor the leak and return three days later to monitor the leak again. The scheduling of the leak monitor process is left up to the technician performing the leak monitors, and the leak form does not contain a comment section for these actions. Page No. 1 of I S Safety Evaluation Summary See "Important Note" below. Activity: Classification: SPECIAL INVESTIGATION INVESTIGATING ACCIDENT Operator Unit 6776 3405 ATMOS ENERGY CORP., MID-TEX DIVISION ATMOS ENERGY/IRVING Ms. Patti Richards V. P. Technical Services P. Evaluation Performed 0. Box 223705 Starting:1/15/2007 Dallas, TX 75222-3705 Ending: System ID and Name 610304 Evaluation No IRVING Evaluator(s) ALFRED GARCIA, JR 2/6/2007 2007-0385 Regional Office Dallas System Type Gas Distribution Total Repeat Corr. 1 0. 0 Phone (972) 240-5757 Action A plan of correction is due by June 15, 2007. Investigation On Monday, January 15, 2007 at approximately 10:00 a.m., an explosion and fire occurred at a residence located at 2824 W. Rochelle Rd., Irving, Texas. It appears gas migrated through the soil and through the sewer system and found a source of ignition. Excavation revealed a leak on the service tap to 2824 W. Rochelle Rd. The lead was originally found on September 30, 2006 and was classified as a Grade 2 leak. The leak had been monitored once every 30 days from discovery. A corrosion leak was also found on the main located in front of 2824 W. Rochelle Rd. There were no fatalities or injuries as a result of the incident. The property damage was limited to one section of the house. The natural gas distribution system is owned and operated by Atmos Energy Corporation (Atmos). Important Note: The pipeline system(s) listed above are identified by a number and name and represent the physical pipe, valves and other components operated by your company, Additionally, there may be a pipeline system listed that is named "System of Company ID number" where "number" is the identification number of your company. This system is used to represent your company and does not represent any physical pipeline system. For internal purposes it allows the Commission to more properly record inspection work performed at the company level. Where deficiencies are found in programs, plans, procedures, and records at the company level and are not associated with a specific physical system, alleged violations will be cited against the "System of Company ID number". May 04, 2007 Page 1 of 1 Alleged. Violation Completion Status 6776 ATMOS ENERGY CORP., MID-TEX DIVISION 3405 ATMOS ENERGY/IRVING eval no system id and name 2007-0385 610304 IRVING 1 new code old code 192-703-002 00-703-002 est compl conf compi repeat No End of violations for this package May 04, 2007 Page 1 of I Alleged Violation List Evaluation No: 2007-0385 D (All correspondence must include the Evaluation No.) IRVING Item No 1 Violation requires a plan of correction by June 15, 2007. A hazardous leak(s) at the listed site(s) was not repaired promptly. Requirement: Note: 49 CFR 192.703(c) See the alleged violation note. End of violations May 04, 2007 Page 1 of 1 S Field Evaluation Package Evaluation Dates Evaluator(s): Start: _ 1 iSjo`j AuFREP refresh date: End: 3/8/2007 . _-Z&^jo-i_ C-,Ftru ^ ra _Stt-. (first and last name) Company Selected: Company Unit: Company System: 6776 ATMOS ENERGY CORP., MID-TEX DIVISION 21935 UNIT OF COMPANY ID 6776 1756 SYSTEM OF COMPANY ID 6776 Were violations cited for the company system? Unit Selected: x No If yes, enter the Evaluation No 3405 ATMOS ENERGY/IRVING System(s) Selected: 610304 IRVING 3/29/2007 E!Yes System Code D Evaluation No(s) Al o-t - o3s5 Page 1 of 1 Distribution Evaluation Data (enter new evaluation data in boxes with dotted borders) company_id: 6776 company: ATMOS ENERGY COR P., MID-TEX DIVISION unit_id: 3405 unit: ATMOS ENERGY/IRVIN G system_id: 610304 * system_code: [ D -- - - - previous evaluation_no: begin_date: system: IRVING --- - ---- i - 514.7 system.miles: endusers r 35173 I install_yr I 1909 ] t4no: 99999 2006-0407 -2m3f2fr06: -_ - --^ end_date: ^.._a1. ^sl^^--: ^ •- enter new_evaluation_no =_>: -------------- --0-1 - 03Ss evalrs: JAP^KY.F(' ------ ----- ---- -- -------- ,-, : - - -: * activity: i F^ i S * classification: --G- ; region: -- , ---=miles evaltd: i 514.7^:num_of endusers: L 5^ ^ integrity_code: i - ----- --------- number_violations cited com p an y_id _at_time_of eval ua ti on: ' ---- ^-----^ ------- ------- -------from: to: lost_unacct for gas_june ending from: 0000^ to: ^ 00001, ^------....--- -- mcf purchased: mcf purchased: mcf sold: mcf sold: % LU ^ no purchase i+I -ioss gain mcf_lost: mcf Iost: ^ * accident_cause: 0 property_damage: number_fatalities: ^ ------------ ---------------aooc>q---------- person I contacted: Vl"tC, S1a^1 no Repeat Previous Evaluation No (if yes enter prev eval no. for the violation) no E] yes [_, yes U1 yes El no yes C no yes El no Page 1 of 'I • Company System Evaluation Data (for a new eval uati on, enter data in boxes with a dotted border) company_id: 6776 company : ATMOS ENERGY CORP., MID-TEX DIVISION unit_id: 21935 unit: UNIT OF COMPANY ID 6776 system_id: 1756 system: SYSTEM OF COMPANY ID 6776 * system_code: ET-1 evaluation no begin_date: 2007-0368 11 /27/2006 * activity: ^ R ^ r enter new evaluation no: __> e n d_d ate: 12/ 11 /2 0061 * classification: number of violations cited: evaluators: jDLV region: 140000000 company_id at time of evaluation: person 1 contacted: Title 1: I 1 - -...6776 . -- ^ person 2 contacted: Title 2: personnel contacted at: .violations cited new code old code 199-202-804 199-101-802 199-241-801 199-113-803 00-202-804 00-101-802 00-241-801 00-113-803 est completion conf completion - repeat * For use of codes, procedural guidance, and blank forms, go to the "Forms and Procedures" button on the "package builder" form. 3/29/2007 Page 1 of 1 RAILROAD COMMISSION OF TEXAS Elizabeth A. Jones, Chairman Michael L. Williams, Commissioner Victor G. Carrillo, Commissioner INTERNAL SAFETY DIVISION Mary L. McDaniel, P.E„ Director Pipeline Safety MEMORANDUM TO: Mary L. McDaniel, P.E. FROM: J.M. Kerl, P.E. DATE: March 28, 2007 SUBJECT: Accident Investigation No. 07-0385 Atmos Energy Corp., Mid-Tex Division 2824 W. Rochelle Rd. Irving, Texas January 15, 2007 The attached accident investigation has been reviewed and approved at the regional level. JMK/arg Attachment RAILROAD COMMISSION OF TEXAS SAFETY DIVISION PIPELINE SAFETY ACCIDENT INVESTIGATION REPORT 07-0385 Operator: Atmos Energy Corp., Mid-Tex Division Location: 2824 W. Rochelle Rd. Irving, Texas 75062 Date of Accident: Investigated By: January 15, 2007 A. R. Garcia FINAL REPORT Issued on March 28, 2007 RAILROAD COMMISSION OF TEXAS SAFETY DIVISION PIPELINE SAFETY FINAL REPORT ACCIDENT INVESTIGATION REPORT 07-0385 Operator: Atmos Energy Corp., Mid-Tex Division Location: 2824 W. Rochelle Rd. Irving, Texas Date of Accident: January 15, 2007 Prepared By: Alfred Garcia Engineering Specialist Reviewed and Approved By: Mary McDaniel, P.E. Direc o , Safety Division Date: Investigation Time: Travel Time: Report Preparation Time: 10 Hours 3 Hours 16 Hours TABLE OF CONTENTS Report No. 07-0385 SYNOPSIS ..............................:......................................................................................1 1. INVESTIGATION A. The Accident ........................................................................................ 2 B. The Accident.Site .......:......................................................................... 2 C. The Pipeline System ......................................................................... 2-3 D. Post-Accident Activities ................................................................... 3-9 II. INJURIES AND DAMAGES A. Injuries to Persons .............................................................................. 10 B. Damages ............................................................................................. 11 III. * METEOROLOGICAL INFORMATION ........................................... 11 IV. EVALUATION OF OPERATOR'S RESPONSE AND PROGRAM EFFECTIVENESS ........................................... 11-12 V. FINDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-13 APPENDICES Appendix A: Appendix B: Appendix C: Appendix D: Photographs Odor concentration test Map of accident site Atmos records -Leak No. 394541 -L.I.O. No. 367515 -Leak No. 401133 . SYNOPSIS On Monday, January 15, 2007 at approximately 10:00 a.m., an explosion and fire occurred at a residence located at 2824 W. Rochelle Rd. Irving, Texas. It appears gas migrated through the soil and through the sewer system and found a source of ignition. Excavation revealed a leak on the service tap to 2824 W. Rochelle Rd. The leak was originally found on September 30, 2006 and was classified as a Grade 2 leak. The leak had been monitored once every 30 days from discovery. A corrosion leak was also found on the main located in front of 2824 W. Rochelle Rd. There were no fatalities or injuries as a result of the incident. The property damage was limited to one section of the house. The natural gas distribution system is owned and operated by Atmos Energy Corporation (Atmos). I • 1. INVESTIGATION Pipeline Safety representatives Alfred R. Garcia Jr. conducted an onsite investigation. This report was compiled using data collected during the onsite investigation and subsequent review of Atmos records. A. The Accident On Monday, January 15, 2007 at approximately 10:00 a.m., an explosion and fire occurred at a residence in Irving, Texas. There were no injuries or deaths as a result of the incident. Bar testing of the main and service line was conducted by Atmos personnel and gas migration was found along the main and service line in front of 2824 W. Rochelle. 9% gas concentrations were also detected in the sewer cleanout of 2824 W. Rochelle located 2 feet from the meter set, and 10% gas concentrations were detected in the sewer vent on the roof of 2820 W. Rochelle. A total of 10 people were evacuated from the affected residences. Excavation revealed an ell was leaking on the welded service tap. Excavation also revealed a corrosion leak on the main approximately 30 feet west of the service tap. An open leak (Ref. Leak No. 367515) existed for 2824 W. Rochelle. The leak was found 9/30/06 and was classified as a Grade 2 leak with 40% gas detected. B. The Accident Site The explosion and fire occurred at 2824 W. Rochelle Rd. Irving; Texas. The residence is a one-story brick veneer; concrete slab house. The house is located in a residential neighborhood and a class three location. C. The Pipeline System Atmos records were reviewed to obtain information regarding the operation of the pipeline system. The natural gas distribution system is owned and operated by Atmos Energy Corporation. The Irving distribution system has three maximum allowable operating pressure (MAOP) of 60 p.s.i.g, 55 p.s.i.g. "and ' low pressure. The MAOP of the area serving 2824 W. Rochelle Rd. is 55 p.s.i.g. The actual operating pressure on January 15, 2007 was 47 p.s.i.g. at 9:45 a.m. The main supplying 2824 W. Rochelle Rd. is a four-inch coated steel line. Records could not be produced to verify the installation date of the main. The service line supplying 2824 W. Rochelle Rd. is a one-inch bare steel service line. The service line was installed April 17, 1960 according to service line report number 12903. The main and service tap is located at the front property line and the meter is located on the outside right side of the residence. The sewer cleanout is parallel to the service line and is approximately two feet from the customer meter. S The measuring station serving the affected area is listed as MS4611 on Atmos records. The location identification is Irving North Finley Rd., one block W of Story Rd. The last inspection date was on 2/28/06. D. Post-Accident Activities 1. Sequence of Events The following activities occurred on January 15, 2007 through January 19, 2007. The times listed below are approximate.. Monday, January 15,2007 3 10:00 a.m. - An explosion and fire occur at 2824 W. Rochelle Rd. Irving, Texas. 10:01 a.m.- Atmos emergency call center receives call about the incident. 10:18 a.m.- Atmos service technician Patrick McGrath enroute. 10:26 a.m.- Atmos service technician Patrick McGrath arrives on scene and begins leak investigation. 11:38 a.m.- Atmos emergency dispatch operator One Walker reports the incident to Railroad Commission (RRC) emergency line. The incident is reported as gas ignition in a bathroom wall. 11:39 a.m.- RRC answering service notifies RRC headquarters on-call Pipeline Safety representative Daniel Ferguson 11:40 a.m.- RRC headquarters on-call Pipeline Safety representative Daniel Ferguson places initial call to Atmos technician Pat McGrath to assess the situation. 12:00 p.m.- Headquarters on-call representative Daniel Ferguso.n passes incident on to RRC regional Pipeline Safety investigator A. R. Garcia. A call is placed by RRC investigator A. R. Garcia to Atmos technician Pat McGrath and gas concentration readings of 6% to 9% are detected in the sewer cleanout located next to the customer meter. RRC investigator A. R. Garcia is • enroute. Additional Atmos field personnel and supervision arrive on-site. 4 1:05 p.m.- Atmos personnel evacuate six people from the residence of 2820 W. Rochelle after finding 10% gas concentrations in sewer vent to the residence. 1:15 p.m.- Atmos personnel begin bar testing and checking the sewer vents to 2816 W. Rochelle, 2726 W. Rochelle, 2726 Cunningham, 2730 Cunningham, 2734 Cunningham, and 2737 Anderson: Additionally the sewer manhole at the intersection of W. Rochelle and Anderson, and the sewer vents to 2811, 2805, 2717, and 2713 W. Rochelle were tested. All locations had a reading of zero. 1:40 p.m.- RRC investigator A.R. Garcia arrives at the scene. A. R. Garcia is updated about the incident from Atmos Operations Supervisor Kyle Slaughter. Kyle 'Slaughter informs A. R. Garcia that an open leak exists for the address (Ref. Leak No. 394541). The Fire Department had departed the scene. 1:45 p.m.- An odor concentration test was performed by RRC investigator A. R. Garcia and Atmos Survey and Corrosion Technician Chris Hoelscher. The test revealed the odor was readily detectable. (Appendix B) 2:00 p.m.-- RRC investigator A.R. Garcia witnesses bar testing along the service line and main, and the perimeter of the residence to 2824 W. Rochelle. Gas concentration are detected along the service line and main at the service tap. A leak survey by Atmos Survey and Corrosion technician Chris Hoelscher was conducted. The leak survey covered 1850.feet and 35 service lines of coated steel, and 900 feet and 19 service lines of polyethylene pipe. The conditions were wet. 2:45 p.m. Atmos third party investigator Unified Engineering and Atmos technician gain access to the residence of 2824 W. Rochelle. 25% gas concentrations are detected around the bathtub of the area where damage occurred. 3:25 p.m.- Atmos personnel begin to excavate the leak at the service tap. 4:35 p.m.- The excavation was complete and the leak was on an ell of the welded service tap. 4:40 p.m.- The evacuation was lifted for 2820 W. Rochelle. 5:04 p.m.- The service line is disconnected from the main. Investigator A. R. Garcia departs the scene. 6:15 p.m.- The service line was replaced to 2824 W. Rochelle by inserting a new polyethylene service line. 6:40 p.m.- The site is clear and Atmos personnel depart the site. RRC Tuesday, January 16, 2007 11:09 a.m.- Atmos personnel return to the site and bar test the area of 2824 W. Rochelle. Gas concentrations were detected around a tree halfway along the service line. Atmos personnel begin to aerate around the tree and begin to remove excavated dirt from the site. 3:13 p.m.- Atmos personnel gain access inside 2824 W. Rochelle and detect gas concentration reading of 0.4% in an area around the bathtub. 3:42 p.m.- Atmos personnel begin to aerate the site: 8:10 p.m.- Atmos personnel detect readings of zero and depart the site. Wednesday, January 17, 2007 " 11:10 a.m.- Atmos personnel return to site. and detect gas concentrations around the area of the tree once again. Aeration process resumes. 3:59 p.m.- A crew with an air evacuator unit took over process of trying to remove gas concentrations from the soil. 8:10 p.m.- Atmos personnel detect readings of zero and depart the site. Thursday, January 18, 2007 Atmos personnel return to the site and continue aeration process around the tree. 5 Friday, January 19, 2007 9:26 a.m.- Atmos personnel continue to detect gas concentrations by the tree. A bar hole purger was installed and bar test area was expanded. 9:45 a.m.- Gas concentrations were detected at the property line, 30 feet west of the service tap over the main. 10:00 a.m.- Atmos personnel excavated the new area. 12:27 p.m.- Atmos personnel find two existing leak clamps on the main and two water service lines in contact with the main. Atmos personnel installed one 4"x7.5" full circle clamp to eliminate the leak. 12:33 p.m.- Atmos personnel informs • supervision of the new leak information. 1:00 p.m.- RRC investigator A. R. Garcia ineets with Atmos supervision to review records related to the incident and is updated on the new leak found. 3:15 p.m.- All readings are zero and Atmos personnel depart the site. Tuesday, February 6, 2007 RRC investigator A. R. Garcia meets with Atmos Supervisor Bruce Miserendino to review remaining records related to the incident. 2. Odor Concentration Test Data On January 15, 2007, an odor concentration test was taken at 1:45 p.m. at the meter loop to 2824 W. Rochelle. The odorant was first detected at 0.15 percent gas in air. It was rated as readily detectable at one percent gas in air. Chris Hoelscher with Atmos Energy Survey and Corrosion, and A. R. Garcia with the RRC Pipeline Safety Section witnessed the test. 3. Bar Test Data On January 15, 2007 Atmos personnel bar tested the main and service to 2824 W. Rochelle. Initial bar testing by Atmos Service Technician Pat McGrath found gas coneentrations.along the service line and at the main 6 near the service tap. Gas concentrations of 6% to 9% were also detected in the sewer to 2824 W. Rochelle. Subsequent bar testing was performed on 2820 W. Rochelle, 2816 W. Rochelle, 2726 Cunningham, 2730 Cunningham, 2734 Cunningham, and 2737 Anderson. Gas concentrations of 10% were found in the sewer to 2820 W. Rochelle. Bar testing of the other listed residences found readings of zero gas concentrations. Additionally, the sewer manhole at Rochelle & Anderson, and the sewer cleanouts to 2811, 2805, 2717, and 2713 W. Rochelle had readings of zero gas concentrations. Bar testing was done around the perimeter of structure at 2824 W. Rochelle and readings were zero. Bar testing was performed inside the residence and 25% gas concentrations were detected in an area around the tub. Aeration efforts began to remove residual gas from the ground in one affected area around a tree halfway in the yard along the service line. The aeration process continued until January 18, 2007 when the readings were zero. On January 19, 2007 the area was bar tested again and gas concentrations were detected at the property line over the main, 30 feet West of the service tap to 2824 W. Rochelle. The corrosion leak was repaired and all readings were zero percent. There was an existing Grade 2 leak on the system for 2824 W. Rochelle (Ref. Leak No. 394541). The leak"was originally found on September 30, 2006 with 40% gas concentrations detected on or around the service tap. The leak was monitored on October 24, 2006 with 10% gas concentrations found. The leak was monitored November 20, 2006 with 61% gas concentrations found. The leak was monitored December 15, 2006 with 15% gas concentrations detected. The leak was monitored December 18, 2006 with 15% gas concentrations detected. The leak was not upgraded until after the incident occurred. 4. Records Reviewed On January 19, 2007, RRC inspector A. R. Garcia met with Atmos Supervisors Kyle Slaughter, Bruce Miserendino, Jesse Oquendo, and Keith Elliott to review records related to this incident. Selected written procedures, records, and maps were reviewed. On February 6, 2007, RRC inspector A. R. Garcia met with Bruce Miserendino to review records related to this incident. Selected written procedures, records, and maps were reviewed. a. Odor concentration data Atmos odorant records were reviewed. There is one odorization point serving gas supplied to the Irving distribution system. Records show the following location. Odorizer No. 573 is located at DE at Tri-Cities CR 1205. Odorizer No. 573 is a type YZ odorizer using Scentinel 0-10 odorant and the injection rate was 0.9060 per MMCF for report dated 7 0 12/4/06. The nearest designated odorant test point (OC-13793) to 2824 W. Rochelle is located at 3601 N. Story Rd. Survey and Corrosion technician Denzil Dean conducted the latest odor concentration test by Atmos on 8/8/06. The odor was rated as readily detectable at 0.25% gas. b. Leak Complaint History Atmos leak complaint records were reviewed. One Leak Investigation Order (LIO) was noted for the address 2824 W. Rochelle. Refer to Atmos LIO No. 367515. The customer/occupant for 2824 W. Rochelle placed a call on 9/30/06 at 12:03 am. The nature of the complaint was not checked on the form. The order was dispatched to Atmos technician Jimmy Brown at 12:04 am. He arrived at 1:25 am. A closed in pressure test was performed on house piping and no leaks were found. Bar testing was performed over the main and service and 40% gas concentrations were detected near the service tap. The Leak No. 394541 was classified as a Grade 21eak. c. Consumption Records Consumption records for 2824 W. Rochelle were reviewed from January 2006 to January 2007. There was no unusual usage noted. 8 Date Read Meter Reading Mcf Used 01/06 02/06 03/06 04/06 05/06 06/06 07/06 08/06 09/06 10/06 11/06 12/06 01/07 02688 02768 02832 02883 02920 ' 02958 02991 03021 03050 03070 03092 03119 03142 7.3 -8.0 6.4 5.1 3.7 3.8 3.3 3.0 2.9 2.6 2.2 2.7 2.3 d. Leak Survey Records 2824 W. Rochelle is located on Atmos map sheet no. AG433992. Atmos conducted leak surveys of the entire map sheet on October 6, 2005. Leak surveys prior to this survey were conducted within the time requirements of the federal regulations and Atmos' procedure manuals. A special leakage survey was conducted by Atmos following the incident on January 15, 2007. The area covered by the special leak survey was 2824 W. Rochelle. Morgan to Rutgers on W. Rochelle, W. Rochelle to 2733 Morgan, W. Rochelle to 2701 Anderson, and Anderson to 2629 Cunningham. No leaks were found. The special leak survey was performed under wet conditions. e. Leak History Repaired leaks were pulled from Atmos electronic records dating back to 1996 for the Survey Area. Prior to the date of the accident, the closest repaired leak was at 2701 and 2712 W. Rochelle repaired 6/28/05 and 5/7/01 respectively. No repair records could be found for the two existing clamps found on the main in front of 2824 W. Rochelle. Open/unrepaired leaks for the Irving distribution system were reviewed. Leak No. 394541, as previously mentioned, was an open leak on the system. This Grade 2 leak was found when a Leak Investigation Order (LIO 367515) was performed. The Leak No. 394541 was originally found on September 30, 2006 with 40% gas concentrations detected on or around the service tap. The leak was monitored on October 24, 2006 with 10% gas concentrations found. The leak was monitored November 20, 2006 with 61% gas concentrations found. The leak was monitored December 15, 2006 with 15% gas concentrations detected. The leak was monitored December 18, 2006 with 15% gas concentrations detected. The leak was due to be monitored before January 18, 2007. The leak status was not upgraded until after the incident. f. Cathodic Protection Cathodic Protection (C/P) records were reviewed for the coated steel main serving 2824 W. Rochelle. The C/P zone is listed as 035-80. The zone is 7342 feet long and contains three test points. Test point one located at "E29 @ No Parking Sign in front of 2847 W. Rochelle" had a pipe-to-soil reading of -1.12 v. on 10/06. Test point two located at "C.B. behind curb 25' N. of driveway in front of 2822 Lowell" had a pipe-to soil reading of -1.29 v. on 10/06. Test point three located at "E29 @ P.P. in front of 2608 Rutgers" had a pipe-to-soil reading of -1.12 v. on 10/06. A pipe-to-soil reading of -1.28 v. was taken on the main 1/19/07 while the clamp was installed. 9 j. Atmos Procedures Atmos leak survey procedures are found in both the Operating and Maintenance Plan (O&M) and the Practice Manual (PM). In the O&M they are found under Procedure 3-5, Periodic Inspection Including Business Districts. Areas outside business districts are required to be leak surveyed at different cycles depending upon the type of pipe in the main. Coated Steel mains are required to be leak surveyed within 60month intervals. In the PM, leak survey procedures are found under Practice 3-5, Periodic Inspection Including Business Districts. This procedure gives instructions on how to conduct a leakage survey. Atmos Classification of Leaks procedures are found in the O&M under Procedure 3-4. Leaks are classified as "Grade 1", "Grade 2", "Grade 3" or "Grade 4" dependant on hazard and immediate threat to safety of persons or property. A Grade 2 leak is judged not to be an immediate hazard but because of location, volume, or pressure, may become a hazard. Atmos Monitoring and Repairing Gas Leaks are found in the O&M under Procedures 3-6. This section describes the process to monitor leaks. This section also states that Grade 2 leaks should be monitored every 30 days to ensure no change in leak migration pattern, which would warrant the leak to be upgraded to a Grade I leak. Emergency response procedures are found in Atmos Emergency Plan. The emergency plan lists the emergency action when a fire or explosion occurs, the initial response, plan of action, investigation, and notification requirements. II. INJURIES AND DAMAGES A. Iniuries to Persons Company Personnel Others Total Fatal Non-Fatal 0 0 0 0 0 0 Total 0 0 0 Injuries There were no injuries or fatalities as a result of the incident. 10 B. Damages 1. Damage to Pipeline Facilities There were no damages to the pipeline facilities as a result of the incident. 2. Other Damages The house at 2824 W. Rochelle Irving, Texas suffered damage to a portion of the house located on the right side of the structure. The estimated property damages including gas loss is approximately $20,000. III. METEOROLOGICAL INFORMATION The Local Climatological Data for the Irving, Texas area on January 15, 2007 is listed below. High (Fahrenheit) Low (Fahrenheit) Precip (Inches) - 32 Degrees - 25 Degrees - 0.15 inches http://www.srh.noaa.gov/fwd/CLIMO/dfw/lcd/dfwi an07. html The area had experienced freezing temperatures and icy conditions prior to the incident. IV. EVALUATION OF OPERATOR'S RESPONSE AND PROGRAM EFFECTIVENESS The incident occurred on Monday, January 15, 2007, at approximately 10:00 am. Atmos dispatch was notified at 10:01 am and field service technician Pat McGrath was notified at 10:02 am. Mr. McGrath arrived at 10:26 am. Mr. McGrath began performing a leak investigation. Mr. McGrath detected gas concentrations in the sewer cleanout of 2824 W. Rochelle. Atmos supervision was notified and additional staff was called in to assist with the incident. Upon arrival, Atmos supervision and field personnel begin on-site testing. The testing consists of bar testing in, under and around structures, and testing of all accessible sewer openings. Gas concentrations were detected in the sewer vent of 2820 W. Rochelle and six people were immediately evacuated. Atmos personnel performed a leak survey of the area using a flame ionization unit. Atmos bar tested every five feet to detect natural gas migration patterns. Atmos personnel began excavating the service tap to 2824 W. Rochelle at approximately 3:25 pm. The leak was eliminated at the service tap to 2824 W. Rochelle at approximately 5:04 pm. Atmos checked the bar test holes once again and zero readings were found. Atmos returned to the site on January 16, 2007 and detected gas concentration readings in one area near a tree. The tree is halfway in the yard and sits 11 concentration readings in one area near a tree. The tree is halfway in the yard and sits along the service line. Atmos begins aeration process and continues until January 19, 2007 when a new leak is found on the main 30 feet west of the service tap. Atmos excavates the leak and installs a full circle clamp. The incident site is rechecked and cleared. Atmos response to the incident appears to be adequate. Atmos reporting procedures were evaluated. The call was received by Atmos dispatch at 10:01 a.m. on January 15, 2007. The incident was telephonically reported to the Railroad Commission Pipeline Safety Emergency phone number at approximately 11:38 a.m. on January 15, 2007, within the two-hour time limit. The one area of concern would be the open Leak No. 394541 at 2824 W. Rochelle the incident site. Leak monitoring procedures come into question. To monitor the leak, a bar hole test must be performed every five feet in all directions over the main and service line until readings are zero percent. The gas migration pattern changed and the leak was never upgraded to a Grade 1 leak, until after the incident occurred. Also, if leak monitoring procedures were performed the corrosion leak on the main 30 feet west of the service tap could have been discovered prior to the incident. Questions also arise to the leak monitor dates of 12/15/06 with 15% gas concentrations detected and then monitored again three days later on 12/18/06 with 15% gas concentrations detected. If the leak had not been monitored on 12/18/06, then the leak would have been due to monitor on or before 01/15/07, the date of the incident. Atmos supervision could not explain why the leak monitor technician would monitor the leak and return three days later to monitor the leak again: The scheduling of the leak monitor process is left up to the technician performing the leak monitors, and the leak form does not contain a comment section for these actions. V. 12 FINDINGS 1. On January 15, 2007 at approximately 10:00 a.m., an explosion and fire occurred at a residence located at 2824 W. Rochelle Rd. Irving, Texas. 2. At 10:02 a.m., Atmos emergency call center received a call about the incident from the resident Enrique Salinas of 2824 W. Rochelle Rd. 3. Gas concentrations were found over the main and service line of 2824 W. Rochelle Rd. Gas concentrations were also detected in the sewer systems of 2824 and 2820 W. Rochelle Rd. 4. Excavation revealed a leak on the ell of the welded service tap to 2824 W. Rochelle Rd., and a corrosion leak on the main 30 feet west of the service tap. 5. Atmos had an open/unrepaired Grade 2 leak in the Irving distribution system for 2824 W. Rochelle Rd. found on September 30, 2006. 6. On January 15, 2007, at 1:45 p.m. the odorant level at 2824 W. Rochelle Rd. was rated as readily detectable at one percent gas in air.. It was first detected at 0.15 percent gas in air. 7. The four-inch main is coated ste'el and was installed to the front property line. Installation date is unknown. 8. The one-inch bare steel service line was installed from the main to the outside right side of the residence on April 17, 1960 by Lone Star Gas Company (now Atmos). 9. The sewer cleanout to 2824 W. Rochelle Rd. is parallel to the gas service line and is approximately two feet from the customer meter. 10. There were no injuries or deaths as a result of this incident. 11. The source of ignition is unknown. 12. The gas distribution system is owned and operated by Atmos Energy Corporation. The probable cause of the accident was natural gas that had migrated in the sewer system of 2824 W. Rochelle Rd. Irving, Texas. Natural gas had leaked from the welded service tap that Atmos had identified on September 30, 2006, and the subsequent corrosion leak found on the main. 13 APPENDIX A Date: 01 /15/07 Time: 3:56 pm Photographer: A. R. Garcia Company: Atmos Energy Location: 2824 W. Rochelle Rd. Irving, TX. Description: Front view of property. (1 of 4 facing North moving West to East.) Date: 01/15/07 Time: 3:56 pm Photographer: A.R. Garcia Company: Atmos Energy Location: 2824 W. Rochelle Rd. Irving, TX. Description: Front view of property. (2 of 4 facing North moving West to East.) • Date: 01/15/07 Time: 3:56 pm Photographer: A. R. Garcia Company: Atmos Energy Location: 2824 W. Rochelle Rd. Irving, TX. Description: Front view of property. (3 of 4 facing North moving West to East.) Date: 01/15/07 Time: 3:56 pm Photographer: A.R. Garcia Company: Atmos Energy Location: 2824 W. Rochelle Rd. Irving, TX. Description: Front view of property. (4 of 4 facing North moving West to East.) Note damage to property isolated to this corner of the house. 2 • Date: 01/15/07 Time: 3:57 pm Photographer: A. R. Garcia Company: Atmos Energy Location: 2824 W. Rochelle Rd. Irving, TX. Description: Front view of property. The service line and customer meter are installed on the front east side of the property. Date: 01 /15/07 Time: 3:57 pm Photographer: A.R. Garcia Company: Atmos Energy Location: 2824 W. Rochelle Rd. Irving, TX. Description: East side view of property. Note very little to no,damage. 3 4 Date: 01/15/07 Time: 3:57 pm Photographer: A. R. Garcia Company: Atmos Energy Location: 2824 W. Rochelle Rd. Irving, TX. Description: Close up of the customer meter set located at the front east side of the house. Time: 3:57 pm Date: 01 /15/07 Photographer: A.R. Garcia Company: Atmos Energy Location: 2824 W. Rochelle Rd. Irving, TX. Description: Close up of the customer meter set with relation to the sewer cleanout. 4 APPENDIX S Railroad Commission of Texas Supplemental Odorization Evaluation Form Company Name: XAt-nos Er e-r^u ^ City / System: 1. Kyi iJ C-, System Type: Dis n Odorized By: Evaluation Number: Date: Transmission Compan Supplier Sniff Odorizer Code: Qrtr Odorant Beginning lbs. / Gal. Odorant Added lbs. / Gal. Odorant End lbs. / Gal. MMCF Inject Rt. Farm Taps Adequate Odor Test Adequate / 2 Year Retention J.W. Odorometer, / Heathtech Location of Test: Odorizer Distance:- None GPS Coordinate: Mth Instrument Used: None Odorant Code: Odorizer Location: Date: Master Meter Natural Odorization Tests: No. of Odorizers: 0`1 - 03^ S' Other 6^ ZtA-1-Miles / 1Di ards / Feet Serial # Evaluator: L.L`[/ IZ^ Odorizer Hook-up r Comments: PS-28 (REV-1/06) Barely Witness: Readily Yes No Test Date: Test Time: AM lifp % TEST 2 Odorant Concentration at 1% Gas in Air Absent No Z1lay'^ TEST 1 Percent gas in Odorometer effluent (from meter chart)when first detected Odor Intensity Rating: Yes Stron Extreme APPENDIX oh 0 ,^ x0 1, x^t XD% kopI, 0, 50.s de-kock) ;t+ FEx^ 05Q,n 'ln Stv-ec VL.A+ a sa( AG '^ n sc,^er vrxrk p 1 roL X Xo x, oj ^!> ol o% GH^^t^ N L(ntiC Fti1J^^ 4S i O^ W a^ K K -x a1^ ^^^ ^SoT ' W-Tcs-T 01-30E^- VecLy L%)ET LatZ0lTlONS 6CH-ELLE J'\ N P o F N, ^, TEs-r baTA F09- a8)Lq W^ ?DJ\dl, 1 tLv 10 U,TX, 1 IIsID-1 APPENDIX Leak Number: 394541 LEAK REPORT T,'ww' , Irving Address: 2824 W ROCHELLE Date Found: 9/30/2006 Technician: Brown, Jimmy Survey Job #: Probable Source: Gas Detected: CGI Test: 0 LIO #: 367515 Grade: 2 Time Graded: Service Assistance Requested: Soil Assistance Arrived: Condition Eliminated: 40 Meter #: 5066128 » Bar Test each direction to 0% >> No Migration Indicated Perimeter of Migration Pattern Soil conditions will not permit bar test Surface Over Leak Asphalt >> Soil Concrete Gravel Surface Over Main >> Soil Gravel Probable Pipe Type: Coated Steel Dug up inlet riser: No Temporary Repair Type: Temp Repair Date: Transaction Date: Lat: Mapsheet: AG433994 Mapsco: 31 AF Cross Refrence #: County: Long: Leak Repaired On: Type: Material: External Corrosion: External Pits: SOP EFC Pipe Size: Pressure: Cause of Leak: Sta. Plus: External Coating: Min Pit Depth: Min Length of Pit: Internal Corrosion: Technician: Wt.: Anode Installed Service #: Wt: Test Station: Test Station: Left: Left: N/A Rectified: N/A Rectified: Anode Installed Technician: Pipe to soil Service: Pipe to soil Technician: CGI Test % Gas: CGI Test Tech: Soap Test: Soap Test Tech: Odorant Detected: Repair Status: Temp Repair Type: Temp Repair Tech: Anode Installed Main #: Pipe to soil Main: Asphalt Concrete Date: Form Completed By: Main Pressure Test of: Test Medium: Test Pressure: Test Duration: Technician: Specified: Top: Service psig Hours Wall Thickness Top: Side: Side: Bottom: Bottom: Plastic Pipe Info Installed Minutes Found: Removed No Repair Information. .02 Level: Monitored * Date Monitored By Feet: Feet: Permanent Repair Tech: --------------- -------- Migration Pattern ------------------------ Change E2/18(2006 Dowlen, Mark N 1-2/1;5/2006 11/20/2006 10/24/2006 Dowlen, Mark Carter, Ron Dowlen, Mark N Description Percent Leak New Gas Grade Leak Number 15 2 N 15 2 N 61 2 10 2 ATMOS energy LEAK INVESTIGATION ORDER J^^U`^^•^ ✓ L.I.O.N Time: ^^ Date: 9- '^^ "j^^A ^ !,( `^-^-+ t..J^"^`^t,) v Prepared By: 1 REPORTED BY A Leak Inspector B O eYCo. Emplovee CustomerlOccupant._Name: D Police/Fire Dept. Person Causing Damage Name: F Other Meter Location (If Known) am pm G^Ca 1 Address: ^ ^,y ^, v/:/^ /^ ^/O r/^/r✓ Tel. No.: Title etc.: 2 NATURE OF COMPLAINT DREPORTED LOCATION A Outside Building A Construction Damage 1 General Odor in Air Vegetation Damage 2 at Meter Visabie/Audibie Leak 3 at Allev D Gas Odor 4 at Street Fumes 5 Other F Other ^ 7own: B Inside Building 1 OdorThroughout 2 in kitchen 3 at Water Heater 4 at Furnace 5 Other Tet. No.: i Evacuate, operate no switches, etc. 2 Turn Gas Off 3 Other: ® EMERGENCY ACTION A Yes B No Q NOTIFIED FIRE DEPT. A Yes B No Other Information: Sesse awndo am pm I:b at_^ OrderDispatchedto:^^f^ INVESTIGATION DATA am pm ^ Investigatorarrivedat^ _. CGICheckedforproperoperation-Make/Model "+^• Serial # ^^^^ 1-2 When a leak or complaint of gas odor is reported at an outside location, take the necessary steps. In all other cases begin the investigation in 1-3. Main _ SL CGI/Survery and or BarTest mainsiservices: - % Gas at Grade #_ Leak on Leak found on unmeasured gas, Leak Report # prepared. % Gas Check storm sewer inlets & sanitarv sewer manholes: Above ground leak found, repaired, & recorded in Section 1-3 H % Gas N/A Test structure sewer atmospshere Flow test abnomal on customer piping, proceed with full % Gas CGi/Survery and or Bar Test near structures in the vicinity fnvestigation in Section 1-3 Negative Leak test applicable above ground piping w/detection solution: Positive [] Survev or BarTest/CGI reading negative, record work done, instructions Normal Abnormal Flow test applicable meters on SL's involved in investigation: given c stomer. Complete order in 1-3H and request customer sign. 1-3 i ding er ' ding a, d bullding sewer atmosphere A CGI/and or Survev for gas in atmosphere: 13 Gas rn/underlaround building or sewer atmosphere persons Evacuate Building H D rain H ous e Pi p in g If % Gas % Gas ^% Gas % Gas Gas detected Recheck for Gas in atmosphere % Gas Eiiminated Resume Investigation in D Indication of Gas - Continue in C Tum Gas Off 8 Vent Buildin g for assistance C Contacted appropriate person [1 CGUBar Test of Customer Si-, Co. SL, Mains (Record results in F) CGI check of sewer alomoshere indicated % Gas 8 Leak source stopped - (Resume investigation in D) p es egulator o Regulator Low Ftow Meter _ ouse piping for minutes: Leakage Rate Meter Inst. o I.eaks ^ Leakage Repair Le Flo g preure found: ^ Lock-up ^ ^ Ib owing preleft: ^ Ityoz^ ' Lock-up ^ I ssure ^ Register's OK ^•' Non-Register - Replace Meter [^ Low flow retest OK ^ Install.Meter # Y Co uB in D IffCon CFH >..tCiosed-in pressure test ^ at _ Ibs. ^oz. Loss O Leak test indicated: o leak in House Piping Proceed to F Leak m House Piping - Continue in E 8 Leak isolated - Red Tagged - Leak test house piping - minutes OK - Continue F Leak repaired - Leak test house piping _ minutes OK - Continue F Mai rvice C rvev and or BarTest iping upstream of meter, SL Y0 % Main ^% eak Found - Grade # Leak Report No. ^ SX/ ^ Leak NOT isolated/repaired - Cut gas off - Red Tag piping - Advise customer to have problem corrected - Continue in F if the source of the odor is not a natural gas leak or if there is a CO alarm continue in G. Otherwise continue in H. E G In the case of CO alarm or request for CO check take the following action: I. Check EVERY appliance with CO detector, cut off and red tag those causing problem. Advise customer to repair. Leave other appliances on. Record actions and complete order in H. H Source of Complaint METER DATA (at time of arrival) Detemime to be: L ^ on pipe carrying her (axplain belo) w Size/K nmeas, Gas Measured Gas p,^•^ Meter#: ^^^7 ^7 g^•^ Work done and instructions give: l Reading: Pre nai M ,^, /^ ^j O^l ant detected - Investigator Odorant detected - Customer ^ .__( ^ .'^ t? r•Sttus as left on Meter seaied Meter removed Meterchangq^orderrequested .J t''^f"^ 6' 305^1- red Propertv Damage Report: Q Yes Insulator Check OK Completed by. Form 7012 Rev. 05106 A 5141 4. , ❑ NA 1 at Pm I henjbvi co at ihe work described atfove has been done and I acknowledge receipt of the abov I ructlons. igpattire^_ ^.- .....^ _^ Custom Leak Number: is 401133 Town: Irving Address: 2824 W. Rochelle 1/19/2007 Date Found: McGuRin, " Don Technician: Survey Job #: ' Probable Source: Main Gas Detected: Soil ' CGI Test: 100 Grade: 1 Time Graded: 1:00 pm Assistance Requested: 1:05 pm Assistance Arrived: 1:06 pm Condition Eliminated: 2:00 pm Probable Pipe Type: Coated Steel Dug up inlet riser: No Temporary Repair Type: Temp Repair Date: Transaction Date: 01/26/2007 Long: Leak Repaired On: Type: . Material: Main Pipe Pipe Size: Pressure: Cause of Leak: Sta. Plus: Asphalt Concrete County: EFC Wt.: Wt: Pipe to soil Main: Left: -1.28 -1.28 Pipe to soil Service: Left: Pipe to soil Technician: McGuffin, Don Date: 01/19/2007 Form Completed By: Surface Over Main >> Soil Gravel Cross Refrence #: 4.00 I.P. 1-60 PSIG Corrosion Anode Installed Main #: Anode Installed Service #: Anode Installed Technician: Mapsheet: AG433992 Mapsco: 31AF 0. Coated Steel SOP • LIO #: Meter #: » Bar Test each direction to 0% No Migration Indicated >> Perimeter of Migration Pattern Soil conditions will not permit bar test Surface Over Leak Asphalt >> Soil Concrete Gravel Lat: LEAK REPORT External Corrosion: None External Pits: None External Coating: Fair Min Pit Depth: Min Length of Pit: Internal Corrosion: No Inspect Technician: McGuffm, Don Test Station: Test Station: N/A Rectified: N/A Rectified: McGuffm, Don. CGI Test % Gas: CGI Test Tech: Soap Test: Soap Test Tech: Odorant Detected: Repair Status: Temp Repair Type: Temp Repair Tech: 20 McGuf$n, Don Pass Downes, James Yes Permanent Pressure Test of: Test Medium: TestPressure: Test Duration: Technician: Specified: Top: Side: Bottom: Main Installed Main Repairs: 02 Level: psig Hours Minutes Wall Thickness Top: Side: Bottom: Found: Plastic Pipe Info Removed Installed F/C Band Clamps: Number - 1 Size - 7 Greater than or equal to 19.5% Permanent Repair Tech: Monitored Date Service Downes, James Feet: ------------------------ Migration Pattern -----------------------Change Description Monitored By J Feet: Percent Gas Leak Grade New Leak Number RAILROAD COMMISSION OF TEXAS Elizabeth A. Jones, Chairman Michael L. Williams, Commissioner Victor G. Carrillo, Commissioner INTERNAL SAFETY DIVISION Mary L. McDaniel, P.E., Director Pipeline Safety MEMORANDUM TO: Mary L. McDaniel, P.E. FROM: J.M. Kerl, P.E. DATE: March 28, 2007 SUBJECT: Accident Investigation No. 07-0385 I. II. Operator: Atmos Energy Corporation Investigation Location: 2824 W. Rochelle Rd. Irving, Texas III. Date of Accident: January 15, 2007 IV. Date of Investigation: January 15-19, 2007 V. VI. VII. Applicable Rules and Regulations: 16TAC and 49CFR Part 192 Possible Violations: 192-703-002, 192-013-003 Recommendations: A review of Atmos leak classification procedures and leak repair and monitoring procedures should be made and revisions are recommended. The procedures need to follow more prudent industry recommendations such as GPTC guidelines. The leak monitoring process needs to be reviewed to determine deficiencies. Engineering Specialist Jarg 14