L202501 NOPV

Idaho Public Utilities Commission Brad Little,Governor
` �- P.O. Box 83720, Boise,ID 83720-0074 Edward Lodge,President
John R.Hammond,Jr.,Commissioner
Dayn Hardie,Commissioner
September 22, 2025 Report#L202501
James Webb—President & Chief Executive Officer
Lower Valley Energy, Inc
P.O Box 188
Afton, WY 83110
Dear Mr. James Webb,
On August 25-26, the Idaho Public Utilities Commission ("Commission"), Pipeline Safety
Division ("Staff'), conducted a Construction Inspection on the Crow Creek Pipeline Project of
Lower Valley Energy("LVE")pursuant to Chapter 601 of Title 49, United States Code.
Staff observed that some of the Idaho natural gas system(s) owned, under construction, and/or
operated by LVE ("Company") was out of compliance on item(s). This results in probable
violations of the pipeline safety regulations Title 49, United States Code of Federal Regulations,
Part 192. The probable violations are as follows:
PROBABLE VIOLATIONS)
1. 49 CFR §192.605 Procedural manual for operations, maintenance, and emergencies.
General. Each operator shall prepare and follow for each pipeline, a manual of written
procedures for conducting operations and maintenance activities and for emergency
response. For transmission lines, the manual must also include procedures for handling
abnormal operations. This manual must be reviewed and updated by the operator at
intervals not exceeding 15 months,but at least once each calendar year. This manual must
be prepared before operations of a pipeline system commence. Appropriate parts of the
manual must be kept at locations where operations and maintenance activities are
conducted.
2. 49 CFR 4192.273 General.
(a) The pipeline must be designed and installed so that each joint will sustain the
longitudinal pullout or thrust forces caused by contraction or expansion of the piping
or by anticipated external or internal loading.
(b) Each joint must be made in accordance with written procedures that have been proven
by test or experience to produce strong gastight joints.
(c) Each joint must be inspected to insure compliance with this subpart.
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3. 49 CFR §192.281 Plastic pipe.
(c) Heat fusion joints. Each heat fusion joint on a PE pipe or component, except for
electrofusion joints, must comply with ASTM F2620 (incorporated by reference in�
192.7), or an altcrnativc written procedure that has been demonstrated to provide an
equivalent or superior level of safety and has been proven by test or experience to produce
strong gastight joints, and the following:
4. 49 CFR 4192.285 Plastic pipe: Oualifying persons to make joints.
(a) No person may make a plastic pipe joint unless that person has been qualified under
the applicable joining procedure by
(1)Appropriate training or experience in the use of the procedure; and
(2) Making a specimen joint from pipe sections joined according to the procedure that
passes the inspection and test set forth in paragraph(b) of this section.
(b) The specimen joint must be:
(1) Visually examined during and after assembly or joining and found to have the same
appearance as a joint or photographs of a joint that is acceptable under the procedure;
and
(2) In the case of a heat fusion, solvent cement, or adhesive joint:
(i) Tested under any one of the test methods listed under§ 192.283(a), and for PE heat
fusion joints (except for electrofusion joints) visually inspected in accordance with
ASTM F2620 (incorporated by reference, see 192.7), or a written procedure that has
been demonstrated to provide an equivalent or superior level of safety, applicable to
the type of joint and material being tested;
(ii) Examined by ultrasonic inspection and found not to contain flaws that would cause
failure; or
(iii) Cut into at least 3 longitudinal straps, each of which is:
(A) Visually examined and found not to contain voids or discontinuities on the cut
surfaces of the joint area; and
(13)Deformed by bending, torque, or impact, and if failure occurs, it must not initiate
in the joint area.
(c) A person must be re-qualified under an applicable procedure once each calendar year
at intervals not exceeding 15 months, or after any production joint is found
unacceptable by testing under 19§ 2.513.
(d) Each operator shall establish a method to determine that each person making joints in
plastic pipelines in the operator's system is qualified in accordance with this section.
(e) For transmission pipe installed after July 1, 2021, records demonstrating each person's
plastic pipe joining qualifications at the time of construction in accordance with this
section must be retained for a minimum of 5 years following construction.
5. 49 CFR §192.287 Plastic pipe: Inspection of joints.
No person may carry out the inspection of joints in plastic pipes required
by 192.273(c) and 192.285(b)unless that person has been qualified by appropriate training
or experience in evaluating the acceptability of plastic pipe joints made under the
applicable joining procedure.
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6. 49 CFR 4192.301 Scope.
This subpart prescribes minimum requirements for constructing transmission lines and
mains.
7. 49 CFR 4192.303 Compliance with specifications or standards.
Each transmission line or main must be constructed in accordance with comprehensive
written specifications or standards that are consistent with this part.
Lower Valley Energy, Welding-Fusion-Mechanical Fitting Manual (June 7, 2017)
Section H-HEAT FUSION PROCEDURES
1.1 General
The appropriate manufacturer's qualification procedures and fusion procedures are
incorporated into this manual by reference.
1.2 Personnel Qualification
Company and contractor personnel shall be qualified in the heat fusion process before
being allowed to make connections on Company PE piping systems. They must
satisfactorily complete an appropriate polyethylene training course which familiarizes
them with proper fusion techniques, heat fusion tools and the proper care of these tools.
Each individual must submit a sample of each heat fusion procedure the individual is to be
qualified for. These fusions will be subjected to visual and destructive testing.
1.4 Equipment
When fusing PE pipe, thermostatically controlled electric heating tools shall be used. To
verify the accuracy of the heating tools, they shall be checked periodically and when out
of tolerance, they shall be calibrated or repaired.
All tools shall be properly maintained to guarantee satisfactory operation when making
heat fusion joints. The tools shall be kept free of accumulations of dirt and molten plastic
residue.
2.2 Equipment
C. Flat heating iron calibrated to between 400 Deg F and 450 Deg F with a recommended
temperature of 425 Deg F.
2.3 Procedure
B. Both surfaces of the heating tool should be free of any accumulation of carbon and
plastic residue.
L. Verify heating tool temperature.
P. Immediately after removing the heating tool, bring the pipe ends together rapidly. DO
NOT SLAM.
2.8 Butt Fusion Checklist
The following list gives items that should be given special attention when making butt
fusion joints:
C. Heating tool is clean, and the temperature is 500 Deg F±10 Deg F;
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F. Melted ends brought together rapidly. Do not slam.
J. To verify the accuracy of the heating tools, check on a regular basis and when out of
tolerance, calibrate and/or repair.
WL Poly Ethylene Pipe Plastics
Joining & Field Procedures For Pipe
WL 101
WL 101-0606-Rev Jun 2006 Supersedes all previous editions-2006 WL Plastics Corp.)
Pipe Unloading and Handling
Observe WL Plastics Unloading Guidelines (WL 111) with WL Plastics pipe
products:
Use only appropriate lifting and handling equipment that is in safe operating condition,that
is properly rated for the load, and that is designed for the intended use.
• Do not lift or move WL Plastics products with equipment such as wire rope or chain that
can damage the pipe. Equipment that contacts the pipe should be fabric slings or should be
rounded or padded to prevent damage to the pipe.
• Uncontrolled movement of products or equipment can be hazardous. Never push, roll,
dump or drop pipe lengths, bundles or coils off the truck, off handling equipment or into a
trench. Always use appropriate equipment to lift, move and lower the pipe.
Butt Fusion Procedure
-Before starting the procedure, be sure portable generators are fueled up and heating tool
surfaces are at the prescribed temperature.
Melt the Component Ends
Check the heating tool to be sure the heating tool surface are clean and at the prescribed
temperature of 400-450 Deg F (204-232 Deg C)
Install the hot, clean heating tool between component ends, and move the component ends
together and against the heating tool surfaces.
Join, Apply and Hold Fusion Joining Force, Cooling
When heating time ends as indicated by the correct melt bead size and all around both
component ends, use a quick, smooth, continuous action to separate component ends,
remove the heating tool,inspect melt surfaces,join acceptable melt surfaces together,
and apply fusion joining force.
When the heating tool is removed, quickly inspect both melted component end surfaces.
A Concave (cupped) melt surface is unacceptable. It indicates pressure applied during
heating that can produce a weak, unreliable joint. Do not continue. Allow the melted
component ends to cool, and remake the joint from the beginning using correct procedure.
Bead Removal
Butt fusion produces a bead of material on the inside of the pipe as well on the outside.
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Lower Valley Energy, Operator Qualification, Standard Practice No.: 00-20-1,
Revision 1, Effective Date April 22, 2020
QUALIFICATION PROGRAM-ELEMENTS
PROGRAM ELEMENTS
C. Ensuring through evaluation that individuals performing covered tasks are qualified:
(a.) The Cooperative requires that any individual working on a covered task be
qualified or work under the direction of a qualified individual. In any case, an
individual performing a covered task must have demonstrated that they have
adequate skills, knowledge, and ability to safely and effectively complete the
tasks.
D. Contractors and other entities shall be notified via email, mail or telephone of the
requirements to provide qualified individuals for the covered tasks to which they will be
employed. The cooperative shall verify the quality of workmanship of contractors by
providing qualified employees from the cooperative to conduct random field inspections.
L. Record Keeping.
(a) The Cooperative shall maintain the following records to demonstrate
compliance with this subpart:
(i) Qualification records shall include:
(1) Identification of qualified individuals;
(2) Identification of the covered tasks the individual is qualified to perform;
Finding(s)•
(1) On June 26, 2025, both company and contractor personnel had been actively involved
in butt fusion operations and pipeline installation. No documented procedures specific to
the construction of transmission lines were made available.
Pursuant to 49 CFR Part 192.303, each transmission line or main must be constructed in
accordance with comprehensive, written specifications or standards that conform to the
provisions outlined in this part.
(2) During pipeline staging activities, multiple lengths of fused polyethylene pipe were
positioned on a hillside located above the Spider Plow equipment. These pipe segments
were subsequently released to descend the slope under gravity.
The pipe traversed the terrain, where it encountered obstructions including rocks and
debris. One segment made direct contact with the Spider Plow blade during its descent.
This impact may have compromised the structural integrity of the affected pipe section,
thereby raising concerns regarding its continued suitability for installation.
(3) Per 49 CFR §192.273(c) and §192.285(b), individuals assigned to inspect or evaluate
joints in plastic piping systems must possess documented qualifications—obtained through
formal training or demonstrable experience—specific to the joining procedure being
performed.
The individual who conducted destructive testing on butt fusion joints prior to August 28,
2025, did not possess the requisite qualifications for that procedure. The certification held
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by the individual was limited exclusively to socket fusion and did not extend to butt
fusions.
(4) While verifying personnel qualifications for conducting butt fusions on 12-inch
polyethylene pipe prior to August 28, 2025, certain individuals who had performed butt
fusions were not qualified in accordance with the Record of Pipe Joining Qualification Test
—Plastic Pipe (192.285) form.
Individuals performing plastic pipe joining must be qualified through documented
procedures that include both visual and destructive testing, as applicable. The absence of
proper qualification may compromise the integrity of the installed pipeline segments.
(5) During the verification process of personnel qualifications for performing butt fusion
procedures, a material discrepancy was identified within the Record of Pipe Joining
Qualification Test — Plastic Pipe (192.285) documentation. The records indicate that
destructive testing was conducted in June 2025; however, it was confirmed that the testing
equipment was not available or operational until August 2025.
49 CFR §192.285 mandates that qualification testing be performed using appropriate and
functional equipment to validate the competency of individuals engaged in plastic pipe
joining operations. The premature certification of destructive testing activities without
access to the necessary equipment undermines the credibility and regulatory validity of the
qualification records in question.
(6) Lower Valley Energy, Welding-Fusion-Mechanical Fitting Manual (dated June 7,
2017) referenced manual asserts that it incorporates by reference all applicable
manufacturer qualification and fusion procedures necessary to ensure compliance with
regulatory requirements governing the installation and joining of polyethylene piping
systems. However, upon review, it was determined that the procedure titled WL
Polyethylene Pipe Plastics: Joining & Field Procedures for Pipe (WL 101, Document No.
WL101-0606-Rev, June 2006)—as published by WL Plastics Corporation and expressly
superseding all prior editions—has not been included among the procedures referenced or
adopted within the manual.
This omission constitutes a failure to fully integrate the manufacturer's most current and
authoritative joining procedures as it pertains to fusions involving WL Plastics pipe. Per
49 CFR Part 192, operator procedures must reflect the latest manufacturer specifications
governing material handling,joining techniques, and field installation practices.
(7) During fusion operations, pyrometers were used to verify the surface temperatures of
heating tools. These instruments lacked valid and current calibration documentation.
(8) Both contact surfaces of the heating tool must be maintained in a condition free from
carbon buildup, plastic residue, or other contaminants that may adversely affect joint
integrity. On August 26, 2025, IPUC staff found that both heating plates in use during
fusion operations had substantial accumulation of plastic residue. The presence of such
contamination constitutes a deviation from prescribed procedural standards, manufacturer
guidelines and introduces risk to the reliability of the fusions.
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Photographs of the heating tool conditions were submitted to Mr. Coles on the same date
for review.
(9) A review of the Lower Valley Energy Welding-Fusion-Mechanical Fitting Manual
dated June 7, 2017, specifically Section H — Heat Fusion Procedures, revealed that the
manual did not include mandatory inspection of melt surfaces for defects such as concave
profiles, bubbling, or pock-marking prior to the joining process.
The omission of this inspection step constitutes a procedural deficiency and is inconsistent
with widely recognized industry standards and best practices governing plastic pipe
joining. Such inspections are essential to ensure the integrity of fusion joints and to mitigate
the risk of joint failure due to surface irregularities or contamination.
Joining procedures must incorporate quality control measures that adequately address pre-
join surface conditions.
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REQUESTED ACTIONS
A reply to this correspondence is required no later than 45 days from the date of this letter. Please
submit a written reply providing a statement of all relevant facts including a complete description
of the corrective action(s) taken with respect to the above referenced probable violations, and all
actions to be taken to prevent future failures in these areas of concern. This written reply must be
signed by a Company official with authority to bind the Company.
Please send all documents to our office at 11331 W. Chinden Blvd, Boise, Idaho 83714-1021. Be
advised that all material you submit in response to this enforcement action may be a public record
and subject to disclosure under Idaho's Public Records Law. See Idaho Code §§74-101 et seq.
If you wish to dispute any of the above referenced potential violations,you have the right to appear
before the Pipeline Safety Division in an informal conference before November 6, 2025, at the
above address. You have the right to present relevant documents and evidence to the Pipeline
Safety Division at that conference. The Pipeline Safety Division will make available to you any
evidence which indicates that you may have violated the law, and you will have the opportunity to
rebut this evidence. See Commission Orders 35095 and 35334, which can be found at
https://puc.idaho.gov/. If you intend to request an informal conference,please contact the Pipeline
Safety Division no later than October 22,2025.
If you wish to dispute any of the allegations in this Notice,but do not want an informal conference,
you may send the Pipeline Safety Division a written reply to this Notice. This written reply must
be filed with the Commission on or before November 6,2025, and must be signed by a Company
official with authority to bind the Company. The reply must include a complete statement of all
relevant facts, all documentation, evidence, and arguments the Company submits to refute any of
the above-mentioned probable violations.
These violations may be subject to any Commission enforcement action as allowed under Idaho
law including, but not limited to, potential civil penalties in accordance with 49 CFR 190.223(a).
If you have any questions concerning this Notice,please contact me at(208)334-0333.All written
responses should be addressed to me at the above address, or you may fax your response to (208)
334-3762.
We appreciate your attention to this matter and your effort to promote pipeline safety.
Sincerely,
Jef Brooks
Pipeline Safety, Program Manager
Idaho Public Utilities Commission
11331 W.Chinden Blvd.Ste 201-A Boise ID 83714
Telephone:[phone] Facsimile:[phone]
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