L202602 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#L202602
Bear Prairie—President & Chief Executive Officer
Lower Valley Energy, Inc
P.O Box 188
Afton, WY 83110
Dear Mr. Bear Prairie,
On July 141h, the Idaho Public Utilities Commission ("Commission"), Pipeline Safety Division
("Staff'), conducted a Field 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 systems(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, Part 192. The probable
violations are as follows:
PROBABLE VIOLATIONS)
1. 49 CFR W2.707 Line markers for mains and transmission lines.
(a) Buried pipelines. Except as provided in paragraph (b) of this section, a line marker
must be placed and maintained as close as practical over each buried main and transmission
line:
(2) Wherever necessary to identify the location of the transmission line or main to reduce
the possibility of damage or interference.
2. 49 CFR 092.479 Atmospheric corrosion control: General.
(a) Each operator must clean and coat each pipeline or portion of pipeline that is exposed
to the atmosphere, except pipelines under paragraph (c) of this section.
(b) Coating material must be suitable for the prevention of atmospheric corrosion.
3. 49 CFR 092.481 Atmospheric corrosion control: Monitoring.
(b) During inspections the operator must give particular attention to pipe at soil-to-air
interfaces, under thermal insulation, under disbonded coatings, at pipe supports, in splash
zones, at deck penetrations, and in spans over water.
LVE FIELD INSPECTION PROBABLE VIOLATIONS LETTER— Page 1 of 3

Findiny,(s)•
1) LVE did not place line markers as close as practical over each buried main and
a transmission line as required.
2) There was no atmospheric corrosion protection on the above ground sections of
pipeline at the Willams tap in Montpelier Idaho as required.
LVE FIELD INSPECTION PROBABLE VIOLATIONS LETTER— Page 2 of 3

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.
Sincerely,
J f Brooks
Pipeline Safety, Program Manager
Idaho Public Utilities Commission
11331 W.Chinden Blvd.Ste 201-A Boise ID 83714
Telephone:[phone] Facsimile:[phone]
LVE FIELD INSPECTION PROBABLE VIOLATIONS LETTER— Page 3 of 3