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HomeMy WebLinkAbout20260910Formal Complaint.pdf RECEIVED September 10, 2026 IDAHO PUBLIC UTILITIES COMMISSION JEFFREY R. LOLL DEPUTY ATTORNEY GENERAL IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83702 (208) 334-0357 IDAHO BAR NO. 11675 jef .lollkpuc.idaho.gov Attorney for the Commission Staff BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF COMMISSION STAFF'S ) FORMAL COMPLAINT CONCERNING ) CASE NO. INT-G-26-08 CONTINUED SAFETY VIOLATIONS WITHIN ) INTERMOUNTAIN GAS COMPANY'S ) NATURAL GAS PIPELINE SYSTEM AT THE ) FORMAL COMPLAINT NAMPA DISTRICT AND REGULATOR ) STATION 48371-RS-59980 ) The Staff of the Idaho Public Utilities Commission ("Commission"), Pipeline Safety Division ("Staff'), by and through its attorney of record, Jeffrey Loll, Deputy Attorney General, files this Formal Complaint under Commission Rule of Procedure 54 concerning continued safety violations within Intermountain Gas Company's ("Company") natural gas pipeline system at the Company's Nampa District and Regulator Station 48371-RS-59980. Staff requests that the Commission enter an Order, requiring the Company to pay a penalty to be determined by the Commission, consistent with Commission authority under Idaho Code §§ 61-501, 61-515 and 61-701 et seq. JURISDICTION 1. The Company is a gas corporation and a public utility, and the Commission has jurisdiction over it and the issues in this case under Title 61,Idaho Code. See Idaho Code §§ 61-117, 61-129, 61-501, 61-503, and 61-515. 2. When a complaint is filed concerning the safety and adequacy of a public utility's FORMAL COMPLAINT-1 service the Commission has the power and authority to investigate the matter and require the"public utility to maintain and operate its line, plant, system, equipment, apparatus and premises in such manner as to promote and safeguard the health and safety of its employees, customers and the public[.]"Idaho Code § 61-515; see also Idaho Code § 61-302. 3. Pursuant to Idaho Code § 61-515 on June 30, 2021, the Commission issued Order No. 35095 in Case No. GNR-U-21-01, adopting the Commission's Safety and Accident Report Rules for Utilities Regulated by the Idaho Public Utilities Commission. Order No. 35095 at 2. Rule 201 of these Rules incorporates by reference Part 260.9, Title 18 and Parts 191, 192, 193, 195, and 199, Title 49 of the Code of Federal Regulations ("CFR") concerning the minimum federal pipeline safety standards. 4. Idaho Code§ 61-701 et. seq. provides the Commission with the authority to enforce "the constitution and statutes of this state affecting public utilities,the enforcement of which is not specifically vested in some other office or tribunal" and to seek the imposition of penalties for violations of these authorities if deemed necessary. BACKGROUND 5. Paragraphs 1 through 4 above are incorporated herein by this reference as though fully set forth in this paragraph. 6. On April 8-9, 2024, Staff conducted an annual field audit consisting of procedural, records, and field observations of the Company's Nampa district. 7. On April 16,2024,as a result of the April 8-9 audit, Staff sent the Company Notice of Probable Violation ("NOPV") Report No. 1202405. NOPV Report No. 1202405, a copy of which is attached to this Formal Complaint as Attachment A, consisted of two separate violations of Title 49 CFR Part 192 regarding failure to lock up due to oil at Regulator Station 48371-RS- 59980. Staff accepted the Company's corrective response dated May 23, 2024, and closed NOPV Report No. 1202405 on August 15, 2024. 8. On May 27-28, 2025, Staff conducted an annual field audit consisting of procedural, records, and field observations of the Company's Nampa district. 9. On June 17, 2025, as a result of the May 27-28 audit, Staff sent the Company NOPV Report No. 1202504.NOPV Report No.1202504,a copy of which is attached to this Formal Complaint as Attachment B, consisted of two separate violations of Title 49 CFR Part 192 FORMAL COMPLAINT-2 regarding failure to lock up due to oil at Regulator Station 48371-RS-59980. Staff accepted the Company's corrective response dated July 31, 2025, and closed NOPV Report No. I202504 on August 4, 2025. 10. As part of its corrective response dated July 31, 2025, the Company committed to conducting quarterly (rather than annual) internal inspections at Regulator Station 48371-RS- 59980 until implementing a mitigation plan. 11. The ongoing quarterly inspections,the results of which are submitted to Staff,have routinely found oil at Regulator Station 48371-RS-59980. A copy of the quarterly inspection findings submitted to Staff is attached to this Formal Complaint as Attachment C. 12. On May 26-27, 2026, Staff conducted an annual field audit consisting of procedural, records, and field observations of the Company's Nampa district. 13. On June 2, 2026, as a result of May 26-27 audit, Staff sent the Company NOPV Report No. I202608. NOPV Report No. I202608, a copy of which is attached to this Formal Complaint as Attachment D, consisted of three separate violations of Title 49 CFR Part 192 regarding failure to lock up due to oil at Regulator Station 48371-RS-59980. 14. On July 1, 2026, the Company responded to NOPV Report No. I202608. A copy of the response is attached to this Formal Complaint as Attachment E.In addition to quoting its response to NOPV Report No. I202504, which was submitted to Staff on July 31, 2025, the Company stated that it was continuing to work with Williams Northwest Pipeline to install a coalescent filter at the Nampa Gate designed to remove the oil preventing lock-up at Regulation Station 48371-RS-59980. VIOLATIONS Violations of Title 49 CFR Part 192 15. Paragraphs I through 14 above are incorporated herein by this reference as though fully set forth in this paragraph. 16. As provided in NOPV No. I202608, the Company violated the following code sections: (1) 49 CFR § 192.605, resulting from a violation of the Company's required procedural manual,OPS 500,a copy of which is attached to this Formal Complaint as Attachment F;(2)49 CFR § 192.703; and(3)49 CFR§ 192.739.Regulator Station 4837 1-RS-59980 has failed to limit pressure due to oil entrained in the gas stream and fouling the equipment through three consecutive annual Staff field audits and multiple internal quarterly inspections. See Attachments A—D. FORMAL COMPLAINT-3 PROPOSED ACTION Civil Penalty Under 49 CFR 190.223 17. Paragraphs 1 through 16 above are incorporated herein by this reference as though fully set forth in this paragraph. 18. As a direct and proximate result of the Company's failures, it could be subject to a penalty of up to $272,926 for each of the above violations for each day that the violation persists up to a maximum amount of$2,729,245.Idaho Code § 61-712A; 49 CFR 190.223. 19. Staff accepted the proposed corrective actions in the Company's response to NOPV Nos. I202405 and I202504 based on the understanding that the Company would resolve the oil problem at Regulator Station 48371-RS-59980 within a reasonable timeframe. 20. Given the persistence of the oil problem at Regulator Station 48371-RS-59980 through three consecutive annual Staff field audits and multiple internal quarterly inspections, Staff believes the Company has failed to rectify the issue within a reasonable timeframe and is not confident that the Company will take the steps necessary to solve the problem of its own accord. 21. Staff recommends the Commission impose the maximum allowable civil penalty amount to help promote code compliance and enhance public safety in Idaho. PRAYER FOR RELIEF WHEREFORE, the Plaintiffs pray for entry of a Commission order: I. Imposing the maximum civil penalty amount available under Idaho Code § 61- 712A as determined by the Commission; and 2. For such other and further relief as the Commission may deem just and appropriate. Staff stands ready for any additional briefing, hearing, or other proceedings deemed necessary by the Commission. DATED this 10th day of September 2026. J,effre R. Loll Deputy Attorney General FORMAL COMPLAINT-4