L202601 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
July 22, 2026 Report#L202601
Bear Prairie—President & Chief Executive Officer
Lower Valley Energy, Inc
P.O Box 188
Afton, WY 83110
Dear Mr. Bear Prairie,
On July 14-15, the Idaho Public Utilities Commission ("Commission"), Pipeline Safety Division
("Staff'), conducted a Drug & Alcohol Program Inspection of Lower Valley Energy ("LVE")
pursuant to Chapter 601 of Title 49, United States Code.
Staff observed that some of the Idaho natural gas program(s) owned, 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, Parts 192 & 199. The
probable violations are as follows:
PROBABLE VIOLATIONS)
1. 49 CFR 4199.5 DOT Procedures.
The anti-drug and alcohol programs required by this part must be conducted according to
the requirements of this part and DOT Procedures. Terms and concepts used in this part
have the same meaning as in DOT Procedures. Violations of DOT Procedures with respect
to anti-drug and alcohol programs required by this part are violations of this part.
2. 49 CFR 4199.101 Anti-Drup-plan.
(a) Each operator shall maintain and follow a written anti-drug plan that conforms to the
requirements of this part and the DOT Procedures. The plan must contain—
(1) Methods and procedures for compliance with all the requirements of this part,
including the employee assistance program;
(2) The name and address of each laboratory that analyzes the specimens collected for
drug testing;
(3) The name and address of the operator's Medical Review Officer, and Substance
Abuse Professional; and
(4) Procedures for notifying employees of the coverage and provisions of the plan.
LVE DRUG&ALCOHOL PROGRAM INSPECTION PROBABLE VIOLATIONS LETTER— Page 1 of 4

3. 49 CFR -4199.105(d) Drug tests required.
(d) Testing based on reasonable cause. Each operator shall drug test each employee
when there is reasonable cause to believe the employee is using a prohibited drug. The
decision to test must be based on a reasonable and articulable belief that the employee is
using a prohibited drug on the basis of specific, contemporaneous physical, behavioral,
or performance indicators of probable drug use. At least two of the employee's
supervisors, one of whom is trained in detection of the possible symptoms of drug use,
_ shall substantiate and concur in the decision to test an employee. The concurrence
between the two supervisors may be by telephone.However,in the case of operators with
50 or fewer employees subject to testing under this part, only one supervisor of the
employee trained in detecting possible drug use symptoms shall substantiate the decision
to test.
4. 49 CFR 099.202 Alcohol misuse plan.
Each operator must maintain and follow a written alcohol misuse plan that conforms to
the requirements of this part and DOT Procedures concerning alcohol testing programs.
The plan shall contain methods and procedures for compliance with all the requirements
of this subpart, including required testing, recordkeeping, reporting, education and
training elements.
5. 49 CFR §199.225 (a)(3) Alcohol test required.
(3) A covered employee who is subject to post-accident testing who fails to remain
readily available for such testing, including notifying the operator or operator
representative of his/her location if he/she leaves the scene of the accident prior to
submission to such test, may be deemed by the operator to have refused to submit to
testing. Nothing in this section shall be construed to require the delay of necessary
medical attention for injured people following an accident or to prohibit a covered
employee from leaving the scene of an accident for the period necessary to obtain
assistance in responding to the accident or to obtain necessary emergency medical care.
6. 49 CFR 4199.241 Training for supervisors.
Each operator shall ensure that persons designated to determine whether reasonable
suspicion exists to require a covered employee to undergo alcohol testing under§
199.225(b) receive at least 60 minutes of training on the physical, behavioral, speech,
and performance indicators of probable alcohol misuse.
7. Lower Valley Energy,Master Drug&Alcohol Compliance Program Plan (June 30,
2026)
Section III: Decoupled Post-Accident Timelines & Cessation of Waivers-
j: Reasonable-Suspicion Determination:
One trained company supervisor or other company designated officer may make the
decision based upon specific, contemporaneous, articulable observations concerning the
appearance, behavior, speech, or body odors of the employee/operator.
LVE DRUG&ALCOHOL PROGRAM INSPECTION PROBABLE VIOLATIONS LETTER— Page 2 of 4

n. Supervisor Training:
Sixty(60) minutes of training is required on the specific, contemporaneous physical,
behavioral, speech, &performance indicators of probable drug use. Sixty(60) minutes of
training is required on the specific, contemporaneous physical,behavioral, speech, &
performance indicators of probable alcohol use. Such supplemental training may be on-
going in association with safety meetings to comply with various requirements for
Worker's Comp or other government regulations.
Paragraph 2: Reasonable-Suspicion Determination:
Strict Post-Accident Testing Windows: Post-accident testing timelines must be decoupled
and executed according to their distinct federal limitations:
• Alcohol Testing Window: Alcohol testing must be attempted within two (2)hours of
the incident. If testing is delayed beyond 2 hours, the DER must document the
reasons. If testing is not completed within eight (8)hours, attempts must cease and
the records must document the cause of the delay.
Finding(s):
1) Drug & Alcohol Procedures did not ensure that post-accident alcohol testing be
conducted as required per the mandated provisions in 49 CFR §199.225(a)(3).
2) LVE did not provide records that supervisors had completed mandatory training
related to recognizing reasonable suspicion for alcohol testing.
3) No records were provided that supervisors had been trained to identify probable drug
use based on observable physical, behavioral, or performance indicators were
provided.
LVE DRUG&ALCOHOL PROGRAM INSPECTION PROBABLE VIOLATIONS LETTER— Page 3 of 4

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 September 5, 2026, 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 August 21, 2026.
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 September 5, 2026, 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, and all documentation, evidence, and argument the Company submits to refute any
of the above referenced 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.
SincereI
Jeff Brooks
Pipeline Safety, Program Manager
Idaho Public Utilities Commission
11331 W.Chinden Blvd.Ste 201-A Boise ID 83714
Telephone:[phone] Facsimile:[phone]
LVE DRUG&ALCOHOL PROGRAM INSPECTION PROBABLE VIOLATIONS LETTER— Page 4 of 4