L202603 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
August 4, 2026 Report#L202603
Bear Prairie—President & Chief Executive Officer
Lower Valley Energy, Inc
P.O Box 188
Afton, WY 83110
Dear Mr. Bear Prairie,
On August 3rd, the Idaho Public Utilities Commission ("Commission"), Pipeline Safety Division
("Staff'), conducted a Procedural Audit 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 VIOLATION(S)
1. 49 CFR 4192.614 Damage Prevention Program.
(a)Except as provided in paragraphs (d) and (e) of this section, each operator of a buried
pipeline must carry out, in accordance with this section, a written program to prevent
damage to that pipeline from excavation activities. For the purposes of this section, the
term"excavation activities" includes excavation, blasting, boring, tunneling, backfilling,
the removal of aboveground structures by either explosive or mechanical means, and
other earthmoving operations.
(b) An operator may comply with any of the requirements of paragraph(c) of this section
through participation in a public service program, such as a one-call system, but such
participation does not relieve the operator of responsibility for compliance with this
section. However, an operator must perform the duties of paragraph (c)(3) of this section
through participation in a one-call system, if that one-call system is a qualified one-call
system. In areas that are covered by more than one qualified one-call system, an operator
need only join one of the qualified one-call systems if there is a central telephone number
for excavators to call for excavation activities, or if the one-call systems in those areas
communicate with one another. An operator's pipeline system must be covered by a
qualified one-call system where there is one in place. For the purpose of this section, a
one-call system is considered a"qualified one-call system" if it meets the requirements of
section(b)(1) or(b)(2)of this section.
LVE-PROBABLE VIOLATIONS LETTER— Page 1 of 3

2. 55-2206 One-Number Notification Service—Establishment—Participation required
—Funding.
Two (2) or more persons who own or operate underground facilities in a county may
voluntarily establish or contract with a third person to provide a one-number notification
service to maintain information concerning underground facilities within a county. Upon
the establishment of the first such one-number notification service, all underground
facility owners with underground facilities within said county shall participate and
cooperate with the service, and no duplicative service shall be established pursuant to this
chapter. The activities of the one-number notification service shall be funded by all of the
underground facility owners required by the provisions of this section to participate in
and cooperate with the service. Each underground facility owner required to participate in
a one-number notification service is subject to the jurisdiction of the damage prevention
board established in section 55-2203, Idaho Code, and shall maintain accurate contact
information,updated at least annually, with the one-number notification service for
individuals responsible for the operation of the underground facilities of the underground
facility owner, including contact information for individuals responsible for responding
to an emergency.
Findinds):
LVE had no requirement in their Operation and Maintenance Manual to be enrolled in an
Idaho one-number notification service as required by Idaho Statute 55-2206. LVE was
not enrolled in Idaho one-number notification service until August 3rd, 2026.
LVE-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 18, 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 September 3, 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 18,2026,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,
A-�
eff Brooks
Pipeline Safety, Program Manager
Idaho Public Utilities Commission
11331 W.Chinden Blvd.Ste 201-A Boise ID 83714
Telephone:[phone] Facsimile:[phone]
LVE-PROBABLE VIOLATIONS LETTER— Page 3 of 3