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HomeMy WebLinkAbout20250509Notice_of_Proposed_Settlement_Order_No._36591.pdf Office of the Secretary Service Date May 9,2025 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF COMMISSION ) CASE NO. INT-G-25-01 STAFF'S FORMAL COMPLAINT ) CONCERNING INTERMOUNTAIN GAS ) NOTICE OF PROPOSED COMPANY AND THE REXBURG LIQUID ) SETTLEMENT NATURAL GAS FACILITY ) NOTICE OF MODIFIED PROCEDURE ORDER NO. 36591 On January 27, 2025, Staff of the Idaho Public Utilities Commission, Pipeline Safety Division ("Staff') filed a Formal Complaint concerning Intermountain Gas Company's ("Company") Rexburg natural gas facility. On January 30, 2025, the Commission issued a Summons to the Company directing it to file any written answer or motion in defense of the Complaint within 21 days of the service date of the Summons. On February 24, 2025, the Commission issued Order No. 36478 granting the Company a 21-day extension of time to file its answer. On March 7, 2025, the Company filed a second Stipulated Request for Extension of Time to Answer Complaint, requesting an extension until April 7, 2025, to file any answer to the Complaint. The Company expressed additional time was necessary to continue discussions with Staff. On March 13, 2025, the Commission granted the second extension. Order No. 36508. On April 18, 2025,the Company filed a Stipulation and Settlement signed by Staff and the Company, and a Stipulated Motion to Approve Stipulation and Settlement. NOTICE OF PROPOSED SETTLEMENT YOU ARE HEREBY NOTIFIED that the Proposed Settlement sets forth a list of the Company's completed corrective actions including: (1) Additional training of Vaporization Technicians on liquified natural gas ("LNG") trailer safety and protocols; (2) Revision of Company Procedure 4565 (Rexburg LNG Transfer Operations); (3) Revision of Rexburg LNG Truck Offloading Operations Checklist; (4) Revision and review of Rexburg LNG Emergency Manual; (5)Additional revisions to Company Procedure 4565 (Rexburg LNG Transfer Operations Checklist); (6) Revision of Company Procedure 4558 (Rexburg LNG Fire Equipment NOTICE OF PROPOSED SETTLEMENT NOTICE OF MODIFIED PROCEDURE ORDER NO. 36591 1 Maintenance); (7) Revision of Company Procedure 4553 (Rexburg LNG Tank Inspection); (8) Development of an Atmospheric Corrosion Control procedure;(9)Fire Protection Evaluation;(10) Reinstallation of stainless steel mesh on LNG PSV flanges; (11) Placement of propane and gasoline in cabinet designed for flammable materials; (12) Confirmation of the number of Manual Pull Stations (MPSs) in the shop area; (13) Installation of Class A fire extinguishers in the shop area; (14) Fire extinguisher near boil off heater stairs; (15) Training of the Engineering Services Supervisor and immediate personnel supervisors pursuant to Company Procedure 4557; (16) Testing of LNG Vaporization Technicians; (17)Repair of Emergency Shut Down("ESD") Station 817; (18) Ensure the local fire department is familiar with the operation of wheeled fire extinguishers; and (19) Verification that the on-board generator shuts down on ESD. Proposed Settlement at 2-8. YOU ARE FURTHER NOTIFIED that the Proposed Settlement lists additional corrective actions the Company will take including: (1) Additional access to ESD buttons; (2) Addition of low-temperature detection interlock on the dewatering pump; (3) Install gas detector in control room; (4) Complete construction of the Control Building's shop area; (6) Review of site security and bolstering of the perimeter fence;(6)Evaluation of technology solutions for electronic tracking and documentation of Rexburg LNG Facility maintenance; and (7) Evaluation of technology solutions for electronic tracking and documentation of Rexburg LNG Facility training.Id. at 8-10. YOU ARE FURTHER NOTIFIED that the Proposed Settlement contains provisions for the Company to file a final report, for a settlement payment of$15,000, for resolution of future disputes arising under the Proposed Settlement, for termination of the Proposed Settlement, and for the extension of the deadlines contained in the Proposed Settlement.Id. at 9-11. YOU ARE FURTHER NOTIFIED that the Parties believe that the Proposed Settlement represents a fair,just, and reasonable compromise of the positions of the Parties in this case, and that the Proposed Settlement is in the public interest. Id. at 11. YOU ARE FURTHER NOTIFIED that under Commission Rule 275, "[p]roponents of a proposed settlement carry the burden of showing that the settlement is reasonable, in the public interest, or otherwise in accordance with law or regulatory policy." IDAPA 31.01.01.275. YOU ARE FURTHER NOTIFIED that the Commission is not bound by the Proposed Settlement reached by the Parties. The Commission will independently review any proposed NOTICE OF PROPOSED SETTLEMENT NOTICE OF MODIFIED PROCEDURE ORDER NO. 36591 2 settlement to determine whether the settlement is just, fair, and reasonable, and in the public interest, or otherwise in accordance with law or regulatory policy. The Commission may accept a settlement, reject a settlement, or state additional conditions under which a settlement will be accepted. IDAPA 31.01.01.274-.276. YOU ARE FURTHER NOTIFIED that if the Commission rejects any part or all of the Proposed Settlement or imposes any additional material conditions on its approval, each party reserves the right to withdraw from the Proposed Settlement within 14 days of such order. Proposed Settlement at 11-12. YOU ARE FURTHER NOTIFIED that the Proposed Settlement and all supporting documents have been filed with the Commission and are available for public inspection during regular business hours at the Commission's office or on the Commission's website at www.puc.idaho.gov. Click on the "NATURAL GAS" tab in the left-hand column of the home page, click"Open Cases," and select the case number as shown on the front of this document. YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code, and that all proceedings in this matter will be conducted pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000 et seq. NOTICE OF MODIFIED PROCEDURE YOU ARE FURTHER NOTIFIED that the Commission has determined that the public interest may not require a formal hearing in this matter, and that it will proceed under Modified Procedure pursuant to the Commission's Rules of Procedure 201-204, IDAPA 31.01.01.201-.204. The Commission notes that Modified Procedure and written comments have proven to be an effective means for obtaining public input and participation. YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this Proposed Settlement may file a written comment explaining why the person supports or opposes the Proposed Settlement. Persons who would like a hearing must specifically request a hearing in their written comments and explain why written comments alone are insufficient. Persons interested in filing written comments must do so within 14 days of the service date of this Order. Comments must be filed through the Commission's website or by e-mail unless computer access is unavailable. To comment electronically, please access the Commission's website at NOTICE OF PROPOSED SETTLEMENT NOTICE OF MODIFIED PROCEDURE ORDER NO. 36591 3 http://www.pue.idaho.gov/. Click the "Case Comment Form" and complete the form using the case number as it appears on the front of this document. To file by e-mail, persons must e-mail the comments to the Commission Secretary and all parties at the e-mail addresses listed below. Persons submitting a comment by e-mail must provide their name, address, and the Case Number under which they are commenting. Persons submitting a comment by e-mail also acknowledge that submitting a comment in an open case constitutes a public record under Idaho Code § 74-101(13), and all information provided by such person is available for public and media inspection. If computer access is unavailable, then comments may be mailed to the Commission and the Parties at the addresses below.Persons submitting a comment by mail must provide their name, address, and the Case Number under which they are commenting. Persons submitting a comment by mail also acknowledge that submitting a comment in an open case constitutes a public record under Idaho Code§74-101(13),and all information provided by such person is available for public and media inspection. For the Commission: For the Company: Commission Secretary Preston N. Carter Idaho Public Utilities Commission Megann E. Meier P.O. Box 83720 Givens Pursley LLP Boise, ID 83720-0074 601 W. Bannock St. secretary(&j2uc.idaho.gov P.O. Box 2720 Boise, ID 83702 Street Address for Express Mail: prestoncarterggivenspursley.com mem(aa,givenspursle. 11331 W. Chinden Blvd. Building 8, Suite 201-A Boise, ID 83714 YOU ARE FURTHER NOTIFIED that the Parties must file any reply comments within 21 days from the service date of this Order. YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the time limit set, the Commission will consider this matter on its merits and enter its final order without a formal hearing. If written comments are received within the time limit set, the Commission will consider them and, in its discretion, may set the same for formal hearing. NOTICE OF PROPOSED SETTLEMENT NOTICE OF MODIFIED PROCEDURE ORDER NO. 36591 4 ORDER IT IS HEREBY ORDERED that the Proposed Settlement be processed by Modified Procedure. Persons interested in filing written comments must do so within 14 days from the service date of this Order. The Parties must file any reply comments within 21 days from the service date of this Order. IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21, 2022. Generally, all pleadings should be filed with the Commission electronically and will be deemed timely filed when received by the Commission Secretary.See Rule 14.02. Service between parties should continue to be accomplished electronically when possible. However, voluminous discovery-related documents may be filed and served on CD-ROM or a USB flash drive. DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this 9tn day of May 2025. EDWARD LODGE, RESIDENT J R. HAMMOND JR., COMMISSIONER DAYN HA DIE, COMMISSIONER ATTEST: LIDS".-Co-, M c Ba ' - an ez Commission Secretary I:\Lega1\GAS\INTG2501_investigation\ordersANPG2501_Ntc_PSet_Mod_cb.docx NOTICE OF PROPOSED SETTLEMENT NOTICE OF MODIFIED PROCEDURE ORDER NO. 36591 5