I202607 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
May 20, 2026 Report# I202607
Pat Darras—Vice President of Engineering & Operations Services
Intermountain Gas Company
400 N 4th St.
Bismarck,ND 58501
Dear Mr. Pat Darras,
On May 12, 2026, the Idaho Public Utilities Commission ("Commission"), Pipeline Safety
Division("Staff'), conducted a construction inspection at S Averill Lane,Meridian, ID within the
Intermountain Gas Company ("IGC") Boise District pursuant to Chapter 601 of Title 49, United
States Code.
Staff observed that some of the Idaho natural gas system(s) owned and operated by IGC
("Company") was out of compliance on item(s). This results in probable violations of the pipeline
safety regulations Title 49, Code of Federal Regulations, Part 192. The probable violations are as
follows:
PROBABLE VIOLATION(S)
Idaho Statute Title 55 Chapter 22, 55-2208. DAMAGE TO UNDERGROUND
FACILITIES -- DUTIES OF EXCAVATOR AND OWNER -- REPORTING OF
DATA.
(1) An excavator who, in the course of excavation, contacts or damages an underground
facility shall notify the underground facility owner and the one-number notification
service. If the damage causes an emergency condition or an actual breach of an
underground facility that releases gas or hazardous liquids into the surrounding
environment, the excavator causing the damage shall also alert the appropriate local
public safety agencies by, at a minimum, calling 911, and take all appropriate steps to
ensure the public safety. No damaged underground facility may be buried until it is
repaired or relocated.
(2) The owner of the underground facilities damaged shall arrange for repairs or relocation
as soon as is practical or may permit the excavator to do necessary repairs or relocation
at a mutually acceptable price.
(3) Any party responsible for damages to an underground facility shall be liable for the
cost of repairs.
(4) The board shall adopt by rule a procedure for the processing of claims related to
damages to underground facilities.
IGC PROBABLE VIOLATIONS LETTER— Page 1 of 6

(5) Underground facility owners who observe or suffer damage to an underground facility
and excavators who observe or suffer excavator downtime related to a failure of one
(1)or more stakeholders to comply with applicable damage prevention regulations shall
report such information to the board in accordance with the rules promulgated by the
board. Reporting of such data does not constitute a complaint provided for in section
55-2211, Idaho Code.
49 CFR H92.361 Service lines: Installation.
a. Depth. Each buried service line must be installed with at least 12 inches (305
millimeters)of cover in private property and at least 18 inches(457 millimeters)
of cover in streets and roads. However, where an underground structure
prevents installation at those depths, the service line must be able to withstand
any anticipated external load.
b. Support and backfill. Each service line must be properly supported on
undisturbed or well-compacted soil, and material used for backfill must be free
of materials that could damage the pipe or its coating.
OPS 307 Polyethylene (PE) Main and Service Construction
5.16.2. At least 12" separation should be maintained when crossing or paralleling electric
(direct bury or in conduit).
5.16.2.1. When 12" separation cannot be maintained, mechanical protection is to
be used to limit the likelihood of detrimental heat transfer to gas facilities.
Examples of protective measures are placing sandbags, rock shield, PVC, or FRP
half sleeve between the pipe and the foreign utility to prevent contact and wear.
5.16.2.2. Electric separation should be discussed with all parties involved prior to
installation.
5.23.2 Service lines less than two (2") inches in diameter shall have at least 18" cover on
private property and at least 24" cover in the right-of-way (ROW).
5.23.2.1 A minimum 24"of cover is preferred over service lines on private property
and in the ROW in non-rock type soil.
49 CFR 4192.605 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.
IGC PROBABLE VIOLATIONS LETTER- Page 2 of 6

49 CFR 4192.614 Damage prevention program.
(c) The damage prevention program required by paragraph (a) of this section must, at a
minimum:
(1) Include the identity, on a current basis, of persons who normally engage in
excavation activities in the area in which the pipeline is located.
(2) Provides for notification of the public in the vicinity of the pipeline and actual
notification of the persons identified in paragraph(c)(1)of this section of the following
as often as needed to make them aware of the damage prevention program:
(i)The program's existence and purpose; and
(ii) How to learn the location of underground pipelines before excavation activities
are begun.
(3) Provide a means of receiving and recording notification of planned excavation
activities.
(4) If the operator has buried pipelines in the area of excavation activity, provide for
actual notification of persons who give notice of their intent to excavate of the type of
temporary marking to be provided and how to identify the markings.
(5)Provide for temporary marking of buried pipelines in the area of excavation activity
before, as far as practical, the activity begins.
(6)Provide as follows for inspection of pipelines that an operator has reason to believe
could be damaged by excavation activities:
(i) The inspection must be done as frequently as necessary during and after the
activities to verify the integrity of the pipeline; and
(ii) In the case of blasting, any inspection must include leakage surveys.
49 CFR 4 192.703 General
(a) No person may operate a segment of pipeline, unless it is maintained in accordance
with this subpart
49 CFR 4 192.707 Line markers for mains and transmission lines.
(c)Pipelines aboveground. Line markers must be placed and maintained along each section
of a main and transmission line that is located aboveground in an area accessible to the
public.
49 CFR& 192.1007 What are the required elements of an integrity management plan?
(b) Identify threats. The operator must consider the following categories of threats to each
gas distribution pipeline: Corrosion (including atmospheric corrosion), natural forces,
excavation damage, other outside force damage, material or welds, equipment failure,
incorrect operations, and other issues that could threaten the integrity of its pipeline. An
operator must consider reasonably available information to identify existing and potential
threats. Sources of data may include incident and leak history, corrosion control records
(including atmospheric corrosion records), continuing surveillance records, patrolling
records, maintenance history, and excavation damage experience.
(c) Evaluate and rank risk. An operator must evaluate the risks associated with its
distribution pipeline. In this evaluation, the operator must determine the relative
importance of each threat and estimate and rank the risks posed to its pipeline. This
IGC PROBABLE VIOLATIONS LETTER- Page 3 of 6

evaluation must consider each applicable current and potential threat, the likelihood of
failure associated with each threat, and the potential consequences of such a failure. An
operator may subdivide its pipeline into regions with similar characteristics (e.g.,
contiguous areas within a distribution pipeline consisting of mains, services and other
appurtenances; areas with common materials or environmental factors), and for which
similar actions likely would be effective in reducing risk.
OPS 1000 Distribution Integrity Management Plan
3.2.3. Excavation Damage
Excavation damage is damage to pipeline facilities caused by earth moving or other
equipment, tools, or vehicles, including damage done by operator's personnel, contractor,
or people not associated with the operator. All buried facilities in MDUG's distribution
system face the threat of being damaged by excavation activities. Consideration is given to
piping within protective casings, inside underground structures such as basins or vaults
which may be shielded or protected from excavation damage. Excavation damage can also
be due to previous unknown damage on pipelines that were not repaired and result in
corrosion.
5.1. Overview
This section describes the existing and proposed measures to address the threats and
associated risk to MDUG's distribution system as outlined in Sections 3.0: Threat
Identification and 4.0: Risk Evaluation and Ranking.
Risk management is accomplished by taking actions to reduce the likelihood of an
occurrence, by alleviating the consequences of an occurrence or both. Appropriate actions
are dependent on the group being addressed, the associated threat, whether the threat is
current or potential in the future, and the viability of the actions in managing the relevant
risk factors.
5.2. Existing Programs Addressing Risk Management
This section summarizes existing plans and programs implemented by MDUG that are
currently in place to manage risks. Each established program contributes to the
management and mitigation of risk to the distribution system. Details for each program are
contained in MDUG operations and maintenance procedures and are available upon
request.
5.2.1. Damage Prevention
The prevention of damage to natural gas distribution facilities by excavation is one of the
most effective ways of increasing the integrity of the gas system and improving public
safety relative to natural gas. MDUG has implemented and maintains a Damage Prevention
Program, OPS 614, that meets the following criteria:
-Meets or exceeds the requirements of§192.614—Damage Prevention Program.
-Participates in One-Call programs within service territory.
-Supports the Common Ground Alliance (CGA) efforts to reduce excavation damage
through the publication and dissemination of best practices.
IGC PROBABLE VIOLATIONS LETTER— Page 4 of 6

Findina(s)
Staff observed—2 feet, of live 3/"PE piping, at a service stub, above grade, and exposed to
atmosphere. There was mechanical damage near the fused-on cap. This was assumed to be due to
neighboring excavation work for a foundation. IGC QA/QC personnel were notified by staff of
the as found condition. IGC advertised that a work order would be created to fix the damaged
line. Except for staff notifying IGC personnel, no notification had been made to Intermountain
Gas Company regarding the exposure, disturbance and damage of the service line. These
findings constitute a significant safety hazard and a violation of the above-mentioned codes.
These findings demonstrate fundamental deficiencies within Intermountain Gas Company's
safety programs and a failure to align with established industry best practices, including:
• IGC's Damage Prevention Program alignment with the Common Ground Alliance Best
Practices for Safe Excavation.
• IGC's Distribution Integrity Management Program as it applies to identifying active
threats and applying preventive and mitigative measures which may include leveraging
available tools such as Federal OSHA complaints per 1926.20, 1926.21, 1926.651 and
related provisions, and/or leveraging the State of Idaho's Damage Complaint Process
administered by the Damage Prevention Board to support public outreach, education,
and/or, when necessary, enforcement actions against bad actors. Damage Prevention
Board enforcement measures may include civil penalties of$1,000 for a second Tier 1
damage and $5,000 for each subsequent Tier 1 damage.
• The ability of IGC's Safety Management System to create a positive safety culture that
promotes the collaboration of internal and external stakeholders as it relates to damage
prevention.
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IGC PROBABLE VIOLATIONS LETTER— Page 5 of 6

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 July 4, 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 June 19, 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 July 4,2026,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]
IGC PROBABLE VIOLATIONS LETTER- Page 6 of 6