II RAILROAD COMMISSION OF TEXAS GAS SERVICES DIVISION GAS UTILITIES DOCKET DOCKET 13-10316 PERMIT APPLICANT AND NAME: 6776 ATMOS ENERGY DIVISION Mr. Ryan D. Ginty Three Lincoln Centre, Ste. 1800 5430 LBJ Freeway REPRESENTATIVE NAME: PHONE: (972) 934-9227 CITY CODE ACTIVE: YES PROTESTED: NO Dallas, TX. 75240 0000 EXAMINER: CO EXAMINER: SUFFIX JE (2) (3) SUMMARIZE: NO APPLICATION STATUS: NOTICE NUMBER MOTION FOR REHEARING: MULTIPLE ORDERS APPLICATION FILED: HEARING: NOTICE OF HEARING ISSUED: HEARING CANCELLED: AMENDED NOH ISSUED: BRIEFS DUE: PRE-HEARING CONFERENCE: TRANSCRIPT RECEIVED: PETITION TO INTERVENE DUE: EXCEPTIONS DUE: EXCEPTIONS RECEIVED: REPLIES DUE: REPLIES RECEIVED: ORAL ARGUMENT: SUSPENSION ORDER: INTERIM ORDER INTERIM ORDER SIGNED-2: FINAL ORDER ISSUED: MFRH MFRH REPLIES TO MFRH DUE: REHEARING GRANTED: ORDER AFTER MFRH: APPEAL: BRIEFS RECEIVED: PROPOSAL FOR DECISION DUE: PROPOSAL ISSUED: CONFERENCE: ADMIN CLOSED: CONFERENCE (INTERIM ORDER): CONFERENCE (MHR): SOI 35TH DAY: SOI SUSPENDED: SOI SOI PARTICIPATE REC: 185TH RESP. TEST. EXH. DUE: RESP. TEST. EXH. REC: INT. TEST. EXH. DUE: INT. TEST. EXH. REC: APPL. TEST EXH. DUE: APPL. TEST. EXH. REC: SUBJECT TEXT Inquiry into the Failure of Atmos Energy Corp.; Mid?Tex Division to Comply with Safety Standards. (Filed by: REMARKS: Commission's Own Motion) RELATED CASES HEARING HOURS UHULKD YYIIH RULE: VIUL 1 [[1th a. 4" CONFERENCE DATE: N6 7, 20/4 OPERATOR NAME: Airmot; EWCGVILJI m: A \5 cm OPERATOR NUMBER: Wot/W 0779 DOCKET NUMBER: 6 I 03/ Q: LEASE .9: WELL NO.: Mel/D 0/579 bot/?614 Sent: Friday, May 16, 2014 9:38:19 AM Subject: Re: GUD 10316; Revised Consent Order Hi Elaine - I've-forwarded the Consent Order on to Atmos for signature. In terms of the violations being cleared, Atmos sent a letter to Polly on April 14th, but the Company has not heard back yet. Ann Ann M. Coffin Parsley Coffin Renner LLP 98 San Jaci'nto Boulevard Suite 1450 Austin, Texas 78701 512/879-0915 512/879-0912 (fax) Original Message From: I'Elaine Moore" To: "ann coffin" Sent: Thursday, May 15, 2014 10:02:28 AM Subject: GUD 10316; Revised Consent Order . ?3 Elaine Moore From: Ann M. Coffin Sent: Wednesday, May 14, 2014 8:46 AM To: Elaine Moore I subject: Taylor Enforcement Action GUD 10316 Hi Elaine - I hope all is well with you. As a'follow-up to my voice message this morning, Atmos would like to resolve this matter through settlement. have looked at the proposed Consent Order and was wondering if we could make the following change to paragraph 10: 10. The violations alleged in Gas Utilities Docket No. 10316 have-been?plaeed are in compliance by Respondent with the requirements of 49 CFR This revision is consistent with the one we made when we entered into the Mesquite settlement. If your okay with this, please send me a revised document and I'll have Atmos sign it and get a check to you. Thanks very much and please give me a call if you'd like to discuss. Ann Ann M. Coffin Parsley Coffin Renner LLP '98 San Jacinto Boulevard Suite 1450 Austin, Texas 78701 51 21879?091 5 51 21879-091 2 (fax) CONFIDENTIAL: This transmission and any attachment(s) thereto contain con?dential information from Parsley Cof?n Renner LLP. This information is intended solely for use by the individual or entity intended as the recipient. If you are not the intended recipient, be aware that any disclosure, copying, distribution, or use of the contents of the information is prohibited. Ifyou have received this transmission in error, please notify us by return e-mail and by telephone immediately at 512/879-0900. I RAILROAD COMMISSION OF TEXAS GAS UTILITIES DOCKET NO. 10316 ENFORCEMENT ACTION AGAINST ATMOS ENERGY CORP., MID-TEX DIVISION (COMPANY ID 6776) FOR VIOLATIONS OF PIPELINE SAFETY REGULATIONS AT THE TAYLOR DISTRIBUTION SYSTEM (SYSTEM ID 410708), TAYLOR, WILLIAMSON COUNTY, TEXAS CONSENT ORDER The Enforcement Section of the Commission, through its attorney, announce that the Enforcement Section and Atmos Energy Corp., Mid-Tex Division (?Respondent?) have agreed to an informal disposition of the matters under this docket through this Consent Order (?Order?), subject to the approval of the Commission. The Commission has authority to informally dispose of this case through a consent order pursuant to TEX. CODE ANN. IN SETTLEMENT OF THIS DOCKET, the Enforcement Section of the Commission and ReSpondent do hereby agree and stipulate as follows: 1 . Respondent is a ?gas utility? as that term is de?ned in Section 121 .001 of the Texas Utilities Code. . 2. Respondent is an ?operator? as that term is de?ned in Title 16, Section 8.5(20) of the Texas Administrative Code. 3. Respondent is a ?person? as that term is de?ned in Title 16, Section 8.5(21) of the Texas Administrative Code. 4. Respondent is a ?gas company? as that term is de?ned in Title 16, Section 8.5(11) of the Texas Administrative Code. 5. The Enforcement Section and ReSpondent hereby agree that the alleged violation set forth in Gas Utilities Docket No. 10316 regarding Safety Evaluation No. 2013?2581, is hereby settled and compromised under the terms of this Order. 6. Respondent makes no admission of any alleged pipeline safety violation, but wishes to address the Commission?s concerns under the terms of this Order. 7. The Commission wishes to further the goal of safe operations of gas pipeline facilities within the State of Texas. - 8. Respondent has elected not to avail itself of the Opportunity for public hearing. 9. The Commission has jurisdiction to assess an administrative penalty against Respondent pursuant to Sections 121.206 and 121.207 of the Texas Utilities Code. aha-f 2 Consent Order, GUD No. 10316, Page 2 10. - The violation alleged in Gas Utilities Docket No. 10316 is in compliance vvith the requirements of 49 CFR 1 1. An administrative penalty in the amount of FIVE THOUSAND shall be recovered by the Commission for the violation asserted against Respondent. l2. ReSpondent has placed into the possession of the Commission funds in the amount of FIVE THOUSAND DOLLARS as payment of administrative penalties assessed in Gas Utilities Docket No. 10316 pursuant to TEX. UTIL. CODE ANN. 121.206 and 121.207. 13. The person signing hereunder for ReSpondent has authority to represent ReSpondent in this matter. - Jurisdiction of this docket having been established and an agreement of the parties having been reached, it is, therefore, ORDERED by the Railroad Commission of Texas that Atmos Energy Corp., Mid-Tex Division is assessed an administrative penalty in the amount of FIVE THOUSAND DOLLARS and that Gas Utilities Docket No. 10316 is informally disposed of and closed by this Consent Order. RAILROAD COMMISSION OF TEXAS (Order approved and signatures af?xed by Master Agreed Order dated .) APPROVED AS TO FORM AND SUBSTANCE Atmos Energy Corp., Mid-Tex Division By: Jeffrey S. Knights Vice President, Technical Service BARRY T. SMITHERMAN, CHAIRMAN LINDII. C. GENERAL COUNSEL DAVID PORTER, COMMISSIONER DAVID W. COONEY, JR., DIRECTOR CHRISTI CRADDICK, COMMISSIONER ENFORCEMENT SECTION RAILROAD COMMISSION OF TEXAS OFFICE OF GENERAL COUNSEL =3 23 2.5% '11 April 29. 2014 :Jeffrey S. Knights 3&5 3 0 Vice President. Technical Service Atmos Energy Corp. Mid-Tex Division gm :3 PO Box 223705 Dallas, Texas 75222-3705 VgapmfaassandC-MRR# cll. 7L?l?l 7133:? ?11:21:11: 131:5 Re: SETTLEMENT OFFER - GUD NO. 10316: Enforcement Action Against Atmos Energy Corp, Mid-Tex Division for Violations ofCommission Pipeline Safety Regulations Dear Mr. Knights: This is to inform you that the above-referenced case has been referred to the Railroad Commission?s Enforcement Section to pursue compliance and an administrative penalty against Atmos Energy Corp, Mid?Tex Division (?Atmos?) for a violation of 49 FR to follow manual of written procedures for conducting operations and maintenance activities and for emergency response]. This violation concerns a "fire order? that Atmos received on or about January 8, 2012 regarding an explosion/?re incident that occurred at 501 Ferguson in Taylor. Texas. According to Atmos? Fire Response Procedures, as specified in it Operation and Maintenance Manual, once a service technician receives a ?re order, the technician will conduct a full leak investigation when access to the premises is allowed. Although the service technician was granted full access to the premises upon arrival, a full leak investigation was not performed until the following day when a Grade 11 gas lease was discovered at the service tap. Should this case go to hearing, Enforcement would be required to seek an administrative penalty of not less than $10,000.00 (one violation of 49 CFR 192.605(a) at However, if by or before June 2, 2014, Atmos cures the referenced violation, pays 3 $5,000.00 penalty, and signs and returns the attached Consent Order, Enforcement would be willing to accept a ?fty percent reduction of the penalty that would otherwise be requested at hearing. For your information. the penalty must be paid by check made payable to the Railroad Commission, reference the fact that it is in payment of an administrative penalty in GUD No. 10316 and be sent to the Commission, Attn: Enforcement. at the address below. Also, please sign the order on the last page only and do not date it or fill in any other blanks. I701 NORTH CONGRESS AVENUE TDD scam?2939 OR ?2463-7284 POST OFFICE Box 12967 ?r AUSTIN, 78711-2967 PHONE: 512/463-6762 FAX: 512/463-6989 AN EQUAL EMPLOYER April 29, 2014 GUD 10316 Page 2 Please be advised that if] do not receive the penalty, signed order and con?rmation of compliance by no later than 5:00 p.m. on June this offer will be deemed to have been rejected and a Complaint will be ?led. In such event there will be no opportunity for further negotiations. If you have any questions, do no hesitate to contact me. Sincerely, f? El ne oore Staff Attorney Enforcement Section Of?ce ofGenerai Counsel Railroad Commission of Texas Phone: (512) 936-2301 Enclosure RAILROAD COMMISSION OF TEXAS GAS UTILITIES DOCKET NO. 10316 ENFORCEMENT ACTION AGAINST ATMOS ENERGY CORP., MID-TEX DIVISION (COMPANY ID 6776) FOR VIOLATIONS OF PIPELINE SAFETY REGULATIONS AT . THE TAYLOR DISTRIBUTION SYSTEM (SYSTEM ID 410708), TAYLOR, WILLIAMSON COUNTY, TEXAS CONSENT ORDER The Enforcement Section of the Commission, through its attorney, announce that the Enforcement Section and Atmos Energy Corp, Mid-Tex Division (?ReSpondent?) have agreed to . an informal disposition of the matters under this docket through this Consent Order (?Order?), subject to the approval of the Commission. The Commission has authority to informally dispose of this case through a consent order pursuant to TEX. CODE ANN. IN SETTLEMENT OF THIS DOCKET, the Enforcement Section of the Commission and Respondent do hereby agree and stipulate as follows: I 1. Respondent is a ?gas utility? as that term is de?ned in Section 121.001 of the Texas Utilities Code. 2. Respondent is an ?Operator? as that term is de?ned in Title 16, Section 8.5(20) of the Texas Administrative Code. 3. Respondent is a ?person? as that term is de?ned in Title 16, Section 8.5(21) of the Texas Administrative Code. 4. Respondent is a ?gas company? as that term is de?ned in Title 16, Section 8.5(11) of the Texas Administrative Code. 5. The Enforcement Section and Respondent hereby agree that the alleged violation set forth in Gas Utilities Docket No. 10316 regarding Safety Evaluation No. 2013-2581, is hereby settled and compromised under the terms of this Order. 6. Respondent makes no admission of any alleged. pipeline safety violation, but wishes to address the Commission?s concerns under the terms of this Order. 7. The Commission wishes to further the goal of safe Operations of gas pipeline facilities within - the State of Texas. 8. Respondent has elected not to avail itself of the opportunity for public hearing. 9. The Commission has jurisdiction to assess an administrative penalty against Respondent pursuant to Sections 121.206 and 121.207 of the Texas Utilities Code. Consent Order, GUD No. 10316, Page 2 '10. The violation alleged in Gas Utilities Docket No. 10316 has been placed in compliance by Respondent with the requirements of 49 CFR 1 1. An administrative penalty in the amount of FIVE THOUSAND shall be recovered by the Commission for the violation asserted against Respondent. 12. ReSpondent has placed into thepossession of the Commission funds in the amount of FIVE THOUSAND DOLLARS ,000 .00) as payment of administrative penalties assessed in Gas Utilities Docket No. 10316 pursuant to TEX. UTIL. CODE ANN. 121.206 and 121.207. 13. The person signing hereunder for Respondent has authority to represent Respondent in this matter. Jurisdiction of this docket having been established and an agreement of the parties having been reached, it is, therefore, ORDERED by the Railroad Commission of Texas that Atmos Energy Corp., Mid-Tex Division is assessed an administrative penalty in the amOunt of FIVE THOUSAND DOLLARS and that Gas Utilities Docket No. 10316 is informally disposed of and closed by this Consent Order. RAILROAD COMMISSION OF TEXAS (Order approved and signaturesaf?xed by Master Agreed Order dated .) APPROVED AS TO FORM AND SUBSTANCE Atmos Energy Corp., Mid-Tex Division By: Jeffrey S. Knights Vice President, Technical Service Ship Request .r'w Page 1 of 1 File Copy Only. Texas Procurement And Support Service Tracking 9171999991703296061365 From: - To: Name: Becky Tate Ship To 1: Jeffrey S. Knights. V.P. Tech Services Department: 455 RRCIOGC?Enforcement section Ship To 2: Atmos Energy Corp.. Mid-Tex Division Phone: 463-4889 Address: P. 0. Box 223705 Remarki: EMM: GUD10316 Remark2: Remark3: Dallas. TX 75222-3705 Reference: .Country: US Special Instructions: Requested Date: 41302014 11:34:22 AM To print this form: 1) Click the Print button. (Print two copies. one to attach to your package and one to keep for your records.) 2) Place the form in a waybill pouch or attach it to your shipment so that the barcode portion of the page can be read and scanned. Form (1 of 1) (S (pr 1 nk5 55x4vo 1 e45 diog4x5 4/30/2014 B?c? Tate .From: Karen Sanchez Sent: Monday, December 16, 2013 2:37 PM . To: Becky Tate Subject: RE: pipeline docket As soon as pOSSible. If you want to bring it up, I will copy it. thanks From: Becky Tate Sent: Monday, December 16, 2013 2:34 PM To: Karen Sanchez Cc: Elaine Moore Subject: RE: pipeline docket I do, when do you need F?om: Karen Sanchez Sent: Monday, December 16, 2013 2:21 PM To: Becky Tate; Bill Drury Subject: pipeline docket Do you have a pipeline docket for Atmos, docket #10316? Need a copy, please Karen Sancfiez Legal?ssistant Speak! Counset' (Rgifroad' Commission quaxas 512-463-6947 Railroad Commission Safety Division Docket Referral Pagelof2 Docket Number: ?0 3 L0 Inspection Package ID: 107985 Company: ENERGY CORP., MID-TEX DIVISION Region Referral Date: Attorney: Status and Status Date: Referred to Legal: Agreed Order: Legal Negotiating: [j PFD: Complaint Filed: Dismissal: Hearing: Comments: 192?605?01 5 The operator did not prepare and/or follow for each pipeline, a manual of written procedures for conducting operations and maintenance activities and for emergency response. Requirement: 49 CFR 192.605 (3) Location: Atmos Energy Operation and Maintenance Manual Note: Atmos Energy did not follow its Fire Response Procedures as speci?ed its Operation and Maintenance Manual. The procedures state once the service technician receives the ?re order. the service technician will conduct a full leak investigation when access to premise is allowed and when practical. The service technician was granted full access to the premise upon arrival and a full leak investigation was not performed until the following day where a Grade II gas leak was discovered at the service tap. Penalty calculation worksheet 34) 49 CFR Part 192-Transportation of Natural and Other Gas by Pipeline (Not following procedures) $1,000 48) Impact to a residential or public area $5.000 Per Day Rate (corrected within 24 hrs) Total $6,000 56) Intentional conduct of person charged (triple amount)(technician waited to leak survey until the following day) $18,000 Maximum per day penalty Total Penalty $10,000 Form PS-53 11l13l1311:36AM Total Enhanced Penalty: 10,000.00 Railroad Commission Safety Division Docket Referral Penalty Amount Collected: Page 2 of 2 Form PS-53 Railroad Commission 11l13l1311:36AM . . . 1 f1 Safety age 0 Docket Referral: Violation List Docket Number; Inspection Package ID: 107985 Company: ENERGY CORP., MID-TEX DIVISION Violation Code: 192-605?015 The operator did not prepare and/or follow for each pipeline, a manual of written procedures for conducting operations and maintenance activities and for emergency response. Requirement: 49 CFR 192.605(a) Violation Notes Evaluation Violation Previous lD State Evaluation ID L'ocation Note 20132581 Uncorrected Atmos Energy Atmos Energy did not follow its Fire Response Operation and Procedures as speci?ed its Operation and Maintenance Maintenance Manual. The procedures state once Manual the service technician receives the ?re order, the service technician will conduct a full leak investigation when access to premise is allowed and when practical. The service technician was granted full access to the premise upon arrival and a full leak investigation was not performed until the following day where a Grade II gas leak was discovered at the service tap. Penalties Evaluation First Day of Days Out Of Penalty Enhanced ID Non-compliance Compliance Amount Penalty Amount Enhancement Reason 20132581 10,000.00 Straight Penalty Not Per Day Rated Form Barry T. Chairman David Porter, Commissioner Christi Craddick, Commissioner Mary Ross McDonald Director RAILROAD COMMISSION OF TEXAS Pipeline Safety Division November 4, 2013 455-21 Mr. Jeffrey S. Knights, Vice President, Technical Servic ATMOS ENERGY CORP., MID-TEX DIVISION P. O. Box 223705 Dallas, TX 75222-3705 Re: Pipeline Safety Evaluation Inspection Package Number: 107985 ATMOS (All correspondence must include the Inspection Package Number) Dear Mr. Jeffrey S. Knights: 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 identi?ed 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 regulations. were. found and are detailed in this correspondence. Violations of the Pipeline Safety rules are subject to administrative penalties. The legal enforcement staff will contact you regarding any enforcement action that may apply as a result of the repeat violati0n(s) noted during the evaluation. The investigation results re?ect the general status and condition of the entire system. It is your responsibility to take action, not only to correct the Speci?c de?ciencies 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 or need assistance, do not hesitate to contact Stephanie Weidman 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 Novembei 4, 2013 Page 2 in the Austin Regional Of?ce at (512) 463-7058. Sincerely, Mary 3055 McDonald Director Enclosure: Safety Evaluation Summary Alleged Violation List 1701 NORTH CONGRESS AVENUE POST OFFICE BOX12967 AUSTIN. TEXAS 78711-2967 PHONE (512) 463-7058 FAX (512) 463-7319 TDD (800) ?335-2989 OR TOY {512) 463-7284 AN EQUAL OPPORTUNITY EMPLOYER . ?2 Railroad Commission of Texas 11l4/1310:09 AM Safety Division Page 1 of 1 Safety Evaluation Summary Inspection Package: 107985 ActivityIClassication: SpecializedIComplaint Operator: Unit: 6776 ATMOS ENERGY CORP.. MID-TEX DIVISION 18622 ATMOS Mr Jeffrey 3- Knights 1 Inspection Package Performed Vice President, Technical Services P. O. Box 223705 Start Date: 07/08/2013 Dallas. TX 75222_3705 End Date: 07/16/2013 Alleged Violations Eval No System ID and Name System Type Repeat Uncorrected Corrected Total 20132581 410708 TAYLOR Distribution 0 1 0 1 Inspector(s) Regional Office Phone Number Stephanie Weidman Austin (512) 463-7058 Action A plan of correction is due by December 04, 2013 Investigation Note Pipeline Safety Engineering Specialist Stephanie Weidman recieved a formal complaint on June 25, 2013 pertaining to an explosion/?re incident occurring on January 18. 2012, at 501 Ferguson in Taylor. Texas. The complainant claims the incident was gas-related.and was not reported as required. thus was not investigated by the Railroad Commission's Safety Division. Important Note: The pipeline system(s) listed above are identi?ed 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 identi?cation 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 with a specific physical system. alleged violations will be cited against the. System of Company Number. aw I Railroad?Commission of Texas Safety Division P8991 ?f 1 Alleged Violation List All correspondence must include the Inspection Package and Evaluation Number 11l4/1310:09 AM Inspection Package: 107985 ActivityIClassication: Specialized/Complaint System Name: TAYLOR Evaluation Number: 20132581 Item Number: 1 Action Needed: Violation requires a plan of correction by December 04, 2013. Description: The operator did not prepare andlor follow for each pipeline. a manual of written procedures for conducting operations and maintenance activities and for emergency response. Requirement: 49 CFR 192.605(a) Notes: Description: Other: Fire Response Procedures Location: Atmos Energy Operation and Maintenance Manual Comment: Atmos Energy did not follow its Fire Response Procedures as specified its Operation and Maintenance Manual. The procedures state once the service technician receives the ?re order, the service technician will conduct a full leak investigation when access to premise is allowed and when practical. The service technician Was granted full access to the premise upon arrival and a full leak investigation was not performed until the following day where a Grade II gas leak was discovered at the service tap. fang Railroad Commission of Texas" Pipeline Safety Evaluation System Field Package Routing Sheet InSpection Package ID: 107985 Activity I Classification: Specialized I Complaint Company: 6776 ATMOS ENERGY CORP., MID-TEX DIVISION Unit: 18622 ATMOS ENERGYITAYLOR Lead Inspector: Stephanie Weidman Inspector(s): Region(s): Austin-4 Date Mailed to Supervisor: Database Change Form Included? Yes N0 Requires Invoice for 16 TAC 8.201 Fee Yes [1 No s??E?vr Supervisor: Steven Rios Date Reviewed: Date Mailed to Austin: Legal Enforcement Requested: Director's Approval: . Database Change Complete: Data Entry Complete: Letter Sent: Filed: Specialized Approval: Received: Notes: Distribution . i. Railroad Commission of Texas, 7 Pipeline Evaluation System Field Package ID: 107985, Specialized I Complaint companlenitISystem Data Company. 6776 ATMOS ENERGY . Representative Mr. Jeffrey 8. Knights Title Vice President. Technical Services Phone 214-206-2701 24 Hour'Phone 866-322-8667 FAX 214?205-2125 E?Mail .I ailingAddress P. O. Box 223?05 . Dallas. TX hanges' nit 18622 ATMOS epresentative Mr. Jerry Spinks District Supervisor hone 512-310?3855 4?Hour Phone - 366-322-8667 AX -Mail Address 3110 N. lH-35 nges. hysical Add dress." ngesg? 410708 TAYLOR Distribution 20132581 11/13/201311:36 Evaluation lD company . Unit Begin Date End Date Miles Evaluated integrity Code Contact 1 Contact 1" Title Contact2 Contact 2 Title Contacted at System System Name Status Jurisdiction Intra-lnterstate System Code Gathering Type Install Year T4 Number Total Miles Region Evaluation 20131616 20132581 Activity I Classi?cation Standard Comprehensiv? .4 Railroad Commission of Texas Pipeline Evaluation System Field Package ID: 107985, Specialized Complaint Distribution Evaluation Data Page 1 of 2. (6776) ATMOS ENERGY CORP., MID-TEX DIVISION (18622) ATMOS 07/08/2013 07/16/2013 71.400 Risk Based Matt Davis Regional Director Round Rock Of?ce 410708- TAYLOR Active Jurisdictional Intrastate (D) Distribution 1928 99999. 71.400 Austin WILLIAMSON Begin Date 05/13/2013 End Date 05/16/2013 Stephanie Weidman System lD Lead Inspector 410708 Railroad Commission of Texas 11/13/2013 11335 Pipeline Evaluation System Page 2 0f 2 Field Package ID: 107985, Specialized I Complaint Distribution Evaluation Data its ?li? . Status Date Evaluation Violation Code Status 20131616 192-463-001 ncorre?cted Complete 08/29120_13 .. . I 1 \x ., Railroad Commission of Texas 11/13/2013 11135 Pipeline Evaluation System Page 1 of? Field Package ID: 107985, Specialized I Complaint Alleged Violations System: 410708 TAYLOR Evaluation ID: 20132581 "Al-r! - ., Uncorrected Corrected 'Repeat Uncorrected Corrected Repeat Uncorrected Corrected Repeat Uncorrected Corrected Repeat Uncorrected Corrected Repeat Uncorrected Corrected Repeat Uncorrected Corrected Repeat Uncorrected Corrected Repeat Uncorrected Corrected Repeat Uncorrected Corrected Repeat 10 Uncorrected Corrected Repeat 11 Uncorrected Corrected Repeat 12 Uncorrected Corrected Repeat 13 EIEHII EIEID Railroad Commission of Texas 11113901311135 Pipeline Evaluation System P8961 0f 1 Field Package ID: 107985, Specialized I Complaint System Events/Comments System: 410708 TAYLOR Evaluation ID: 20132581 I Date System ID at Event Action Event Note 05/31/2013 410708 Total Miles Changed Mileage change per operator?s records. From: 701 To: 71.4 Comment System Conversion 02/06/2009 TAYLOR COMBINED WITH THE TAYLOR DIST. System Conversion 02/06/2009 SYSTEM 03-1763 8/7/03 SEC. System Conversion 02/06/2009 OPERATOR CHANGE FROM TXU GAS DISTRIBUTION (5702) TO TXU GAS System Conversion 02/06/2009 COMPANY (6468) PER MLM 12/15/03 SEC. System Conversion 02/06/2009 OPERATOR CHANGE FROM TXU GS COMPANY ATMOS ENERGY System Conversion 02/06/2009 CORP., MID-TEX DIVISION (6776) PER MLM 4/7/05 SEC. Railroad Commission of Texas Pipeline Evaluation System- Field Package ID: 107985, Specialized I Complaint . J, Distribution System Data - 11l13/2013 11:36 Page 1 of 5 System: 410708 TAYLOR Evaluation ID: 20132581 Purchased Meters -- 1 Customers 3664 .. . .. Odorizers Provided By Self Supplier DSelf? El? No-Chang'e Odorizers 1 . .. .. I. Odorizer Types injection [j Bypass Farm.'Faps El Drip Eli Injection No.0han?ge: . Odorant Spotleak 1009 I I I I City Gate Stations 1 4 .Patrol' Points 4 Safety Related Condition - Farm Taps 15 Service Average Length (Ft) 29.800 Regulator Stations 21 Master Meter Regulator Stations 0 Low Pressure? Yes Yeg' No cathodic-Protection Zones . 232 Short Cathodic Pressure Sections 0 Casings 4 Shorted Casings 0 Unrepaired Grade2 Leaks 5 Unrepaired: Grade 3 Leaks 1 Unrepaired Leaks As Of 05/13/2013 55 city gate 12 ounces Railroad Commission of Texas 11/13/2013 11135 Pipeline Evaluation System Page 2 0f 5 Field Package ID: 107985, Specialized I Complaint 'Distribution System Data System: 410708 TAYLOR Evaluation ID: 20132581 L. Ks" Railroad Commission of Texas 11/13/2013 11:35 Pipeline Evaluation System Page 3 of 5 Field Package ID: 107985, Specialized [Complaint Distribution System Data System: 410708 TAYLOR Evaluation lD: 20132581 .- "215' "-315. . 1 430418 6777 ATMOS PIPELINE - TEXAS 12/31/2012 Corrosion Natural Forces Excavation Other Outside Force Damage Material or'Welds Equipment Operations. Other - . . 7820 Steel Unprotected Bare' 2" Cir-Less Steel Unprotected Bare . Over2" Thru 4" Steel Unprotected Bare Over 4" Thru 8" Steel Protected Coated 2" or Less Steel Protected Coated Over 2" Thru 4" Steel Protected Coated Over 4" Thru a" Casthrought Iron 2" or Less CastIWrought Iron Over 2" Thru 4" Cast/Wrought Iron Over 4"?Thru 8" PE - 2" or Less PE Over 2" Thru 4" PE Over 4" Thru 8" k, +5 :?kj Railroad. Commission of Texas 11/13/2013 11235 Pipeline Evaluation System Page 4 0f 5 Field' Package ID: 107985, Specialized I Complaint Distribution SYstem Data System: 41 0708 TAYLO R- Evaltiation ID: 20132531 .. - - u? .- n-a .-. - -- R?i? Steel Unprotected Bare 1" oriLess Steel Unprotected Bare Over 1" Thru 2" Steel Unprotected Bare Over 2" Thru 4" PE 1" or Less PE Over Thru 2" PE Over 2" Thru 4" Railroad Commission of Texas 11/13/2013 11335 Pipeline Evaluation System Page 5 01?5 Field Package ID: 107985, Specialized I Complaint Distribution System Data System: 410708 TAYLOR Evaluation ID: 20132581 3359. .. . . . .. 220768.000 211953.000 Evaluation Comment: ENFORCEMENT REQUESTED. 2 1 ?i \exr/ ?sf/l Railroad Commission of Texas 11113901311335 Pipeline Evaluation System P8991 0f 1 Field Package ID: 107985, Specialized I Complaint Alleged Violations System: 410708 TAYLOR Evaluation lD: 20132581 Item Number: 1 Description: The operator did not prepare and/or follow for each pipeline, a manual of written procedures for conducting Operations and maintenance activities and for emergency response. Requirement: 49 CFR 192.605(a) Notes: Description: Other: Fire Response Procedures Location: Atmos Energy Operation and Maintenance Manual Comment: Atmos Energy did not follow its Fire Response Procedures as speci?ed its Operation and Maintenance Manual. The procedures state once the service technician receives the ?re order. the service technician will conduct a full leak investigation when access to premise is allowed and when practical. The service technician was granted full access to the premise upon arrival and a full leak investigation was not performed until the following day where a Grade ll gas leak was discovered at the service tap. I . Railroad Commission of Tei?a?? Pipeline Evaluation System Investigation Report inspection Package Number: 107985 Activity/Classification: SpecializedIComplaint 11113/13 11:36 AM Page 1 of 2 Start Date: Tl8f2013 End Date: 7/16/2013 Date of Incident: Initiated By: Stephanie Weidman Call In Type of Facility: Distribution Complaint none Type of Pipeline: Distribution incident: Material Transported: Natural Gas Fatalities: New Construction Number: WINES: Latitude Longitude: Property Damage: Location: 501 FergUson 30 Day Report Required? No City: Taylor, TX County: WILLIAMSON Contact Type Name Ccimpany I Affiliation Phone Number Pipeline Operator Matt Davis Regional Director] Atmos Energy 512-310-3832 Pipeline Safety Engineering Specialist Stephanie Weidman recieved a formal complaint on June 25, 2013 pertaining to an explosionl?re incident occurring on January 18, 2012, at 501 Ferguson in Taylor, Texas. The complainant claims the incident was gas-reiated.and was not reported as required, thus was not investigated by the Railroad Commission's Safety Division. . '2 - 15.4 . .. (Includeza . Mrs. Weidman met with representatives from the local gas distribution company, Atmos Energy. on July 8, 2013 to review records pertaining to the incident at 501 Ferguson in Taylor, TX. Documents were reviewed and indicate the main house at 501 Ferguson is served gas, however, the ?re occurred in a separate building behind the main house, which did not have gas servive. All records reviewed coincide with the time of the incident. Records reviewed include Operation, Maintenance and Emergency procedures, main and service pipe speci?cations, leak call complaint history within a two block radius of 501 Ferguson, last leak survey on the main and service line supplying 501 Ferguson, 00 records frOm the leak surveyor, service tech report pertaining to the incident and their 0Q records, consumption history. and turn onlturn off history for service feeding 501 Ferguson. The records reviewed do not reveal any abnorrnai operating or maintenance conditions around the time of the incident. Based on the information provided by Atmos, the incident does not appear to meet the reporting requirements of 49 CFR 191.5. As a result of the investigation, a deficiency was found in Atmos's response activities associated with the incident. Atmos's ?re response procedures state once the service technician receives the "fire order". the service technician will conduct a full leak investigation. when access to the premise is allowed and when practical. Atmos's records indicate the service technician was granted full access to the premise upon arrival and a full leak investigation was not performed until the following day where a Grade l gas leak was discovered at the service tap. Subsequent bar hole testing did not indicate Railroad Commission of Tel?ia? - - 11?13?131136 AM Pipeline Evaluation System Page 2 0f 2 Investigation Report Inspection Package Number: 107985 Activity/Classi?cation: Specialized/Complaint gas migration toward any neighboring structures.