20250306Decision Memo.pdf

RECEIVED
March 6, 2025
Idaho Public
DECISION MEMORANDUM utilities Commission
Case No.:
TO: COMMISSIONER LODGE GNR-G-25-01
COMMISSIONER HAMMOND
COMMISSIONER HARDIE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: JEFF BROOKS, PIPELINE PROGRAM MANAGER
CHRIS BURDIN,DEPUTY ATTORNEY GENERAL
DATE: MARCH 4, 2025
SUBJECT: INVESTIGATION INTO DALE RAINEY DESIGN GROUP,OWNER OF A
HOUSING DEVELOPMENT AND UNDERGROUND PIPELINE SYSTEM
Dale Rainey Design Group, also known as the owner of the Old Mill Development
("Company") in Old Town, Idaho has installed a new underground pipeline system for a new
housing development near or within Avista Gas Company's franchise area near Priest River,Idaho.
The Company is not a utility; is not currently regulated by the Idaho Public Utilities Commission
("Commission"),and does not currently possess a Certificate of Public Convenience and Necessity
("CPCN").
BACKGROUND
In early October 2024, Commission Staff("Staff') received notification from Avista Gas
Company that a new pipeline system was being built within its franchise area. Avista indicated
that the location in Old Town was too far from its existing pipeline system to extend service. Staff
visited the development site on Old Mill Road to confirm a new development was being built that
included a buried pipeline system.
The State of Idaho has adopted the federal Pipeline and Hazardous Materials Safety
Administration's ("PHSMA") pipeline safety program, which includes both natural and liquid
pipeline systems.
Staff believes that the pipeline system at the Old Mill development will fall under the
jurisdiction of the Commission's pipeline safety program as one of the following conditions exist:
1. Multiple customers (10+ supplied from a single source).
2. Multiple customers, where a portion of the system is in a public place.
DECISION MEMORANDUM 1

On November 20, 2024, Staff sent a letter (See Attachment A) to the Company requesting
additional information about the underground pipeline system. To date, the Company has not
responded.
STAFF RECOMMENDATION
Based on information available, Staff believes there is evidence to merit a formal
investigation to determine whether the Company is operating an underground pipeline system that
would be subject to the Commission's Pipeline Safety requirements. The investigation would
conclude with a Staff recommendation to the Commission for further action, if any.
COMMISSION DECISION
Does the Commission wish to open an investigation to review whether Dale Rainey Design
Group and its underground pipeline system should be regulated by the Commission and direct
Staff to submit a recommendation after the investigation is complete?
0-,, )-L4,
Chris Burdin
Deputy Attorney General
I:\Legal\GAS\DRD_investigation\Gas_dec_cb.docx
DECISION MEMORANDUM 2

Idaho Public Utilities Commission Brad Little,Governor
� �- P.O. Box 83720, Boise, ID 83720-0074 Eric Anderson,President
John R.Hammond,Jr.,Commissioner
Edward Lodge.,Commissioner
November 21, 2024
Dale Rainey
Dale Rainey Design Group.
dale c,�t raineydesigslgi•oup.com
Dear Mr. Rainey:
This letter is to request additional information on the Old Mill housing development in Old
Town, Idaho relating to the underground pipeline system. In early October, the Idaho Public
Utilities Commission received a call indicating a new pipeline system was being installed in Old
Town. Staff from the PUC visited the development site on Old Mill Road (picture included with
this letter)to confirm a new development was being built that included a buried pipeline system.
The State of Idaho has adopted the federal Pipeline and Hazardous Materials Safety
Administration's (PHSMA) pipeline safety program, https://www.phmsa.dot.gov/. This safety
program includes both natural gas and manufactured gas pipeline systems per Idaho legislation
Title 61, Public Utility Regulation, Title 61 —Idaho State Legislature.
It is staffs understanding that the pipeline system at the Old Mill development will fall under the
under the jurisdiction of our pipeline safety program as one of the following conditions exist:
1. Multiple customers (10+ from a supplied from a single source).
2. Multiple customers, where a portion of the system is in the public place.
Additional information and guidance on determining if this system is subject to regulatory
requirements can be found at:
littys://www.plimsa.dot.gov/sites/i)limsa.dot.gov/files/does/training/pipeline/56031/revised-
P-Llidance-operators-snial l-lp-gas-systems-april-2017.pdf
In order to finalize our evaluation of jurisdictional regulation, can you please provide additional
information on how the pipeline system was designed, will operate, and if any of the pipeline
runs under a public place, easement or roadway.
.If you agree that this system falls within the parameters described above, you will need to file a
request for an Operator ID with PHMSA. The application form(s) can be found at:
https://www.phmsa.dot.gov/forms/operator•-reports-submitted-plimsa-forins-and-instrLIctions.
Once you receive an operator ID, our Pipeline Safety Inspectors will reach out to review the
various required inspections and schedules.
Attachment A
March 4, 2025, Decision Memorandum
11331 W.Chinden Blvd.,Building 8 Suite 201-A,Boise ID 83714 Page 1 of 2
Telephone:[phone] Facsimile:[phone]

I understand this is a lot of information to go through. Please feel free to contact Jeff Brooks,
Pipeline Safety Program Manager at 208-507-8911 if you have any questions.
Sincerely,
('✓ 1' L 1
Maria Barran-Riley
Executive Director, Idaho Public Utilities Commission
11331 West Chinden Blvd, Ste 201-A
Boise Idaho 83714
Attachment A
March 4, 2025, Decision Memorandum
Page 2 of 2