STATE OF INDIANA

INDIANA UTILITY REGULATORY COMMISSION

REQUEST OF INDIANA GAS COMPANY, INC. D/B/A CENTERPOINT ENERGY INDIANA NORTH AND THE COMMISSION’S PIPELINE SAFETY DIVISION FOR APPROVAL OF A CONSENT AGREEMENT RESOLVING PIPELINE SAFETY VIOLATIONS AND NOTICE OF THE COMMISSION’S INTENT TO APPROVE THE CONSENT AGREEMENT.

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CAUSE NO. 45521

APPROVED:

ORDER OF THE COMMISSION

Presiding Officers: James F. Huston, Chairman Loraine L. Seyfried, Chief Administrative Law Judge

On March 24, 2021, the Indiana Utility Regulatory Commission (“Commission”) issued an Order concerning its intent to approve a February 24, 2021 Consent Agreement entered into between Indiana Gas Company, Inc. d/b/a CenterPoint Energy Indiana North (“CenterPoint”) and the Commission’s Pipeline Safety Division (“Division”) regarding alleged pipeline safety violations by CenterPoint on May 10, 2019 unless an objection or request for hearing was filed under this Cause within 20 days.

Twenty days have passed and no objection or request for a hearing has been received.

1. Commission Jurisdiction. Under Ind. Code § 8-1-22.5-7(b), the Commission,after notice and opportunity to be heard, may impose a civil penalty against a person that violates Ind. Code ch. 8-1-22.5 or any rules issued under that chapter. CenterPoint is a person as defined by Ind. Code § 8-1-22.5-1(e) and was provided notice of this Cause and an opportunity to be heard. Therefore, the Commission has jurisdiction over CenterPoint and the subject matter of this proceeding.

2. Background and Procedural History. On March 2, 2020, the Division issued aNotice of Probable Violation to CenterPoint alleging eight probable violations that occurred on May 10, 2019, including violations regarding tapping a pipeline under pressure and the qualification of pipeline personnel. The Notice of Probable Violation was issued to CenterPoint as a result of the Division’s investigation of an incident at 490 Cramertown Loop, Martinsville, Indiana on May 10, 2019. While CenterPoint’s contractor, Miller Pipeline, was tapping and stopping a 4” steel main, the pipeline ignited, resulting in injuries to a CenterPoint employee, a 175-customer outage, destroyed equipment, and damaged communication lines.

CommiHioll.er Yes No 1,·ot PartiClpatins

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rreeman MtVda

v oer ~•egner

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The Consent Agreement resolves the eight alleged violations for which CenterPoint has taken remedial action and agreed to pay a monetary civil penalty of $150,000, which will not be recoverable in the utility’s rates.

Upon review of the information provided by the Commission’s Assistant General Counsel, the Commission finds the Consent Agreement reasonably resolves the alleged violations. Accordingly, the Commission approves the February 24, 2021 Consent Agreement entered into between CenterPoint and the Division.

IT IS THEREFORE ORDERED BY THE INDIANA UTILITY REGULATORY COMMISSION that:

1. The February 24, 2021 Consent Agreement entered into between CenterPoint andthe Division, a copy of which is attached to this Order, is approved.

2. Within 30 days from the date of this Order, CenterPoint shall pay a civil penaltyof $150,000 to the Treasury of the State of Indiana through the Secretary of the Commission.

3. This Order shall be effective on and after the date of its approval.

HUSTON, FREEMAN, OBER, AND ZIEGNER CONCUR; KREVDA ABSENT:

APPROVED:

I hereby certify that the above is a true and correct copy of the Order as approved.

_____________________________________ Dana KoscoSecretary of the Commission

STATE OF INI)JANA

INDIANA UTILITY REGULATORY COMMISSION

CONSENT AGREEMENT OF INDIANA GAS COMPANY, INC. D/B/A CENTERPOINTENERGY INDIANAN ORTH AND THEPIPELINE SAFETY DIVISION OF THE INDIANA UTILITY REGULATORY COMMISSIONF'QR. APPROVAL OF 'MONETARY CIVIL PENALTIES UNDER IND. CODEC::IL8-l-22;5FOR VIOLATlONS OF MINIMUM PIPELINESAFETY STANDARDS

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CAUSENb.

STIPULATION, CONSENT AGREEMENT, ANDWAIVER OFEVIDENTIARYHEARING

Indiana Gas Company, In~., d/b/a CenterPoint EnergyJndianaNorth ("CEI North~')> formerly known as Ve.ctren, a CenterPoint Energy Company,andthePipeline SafetyDivisiort (''Division") of the Indiana Utility Regulatory Comrnissiori (''Commission") voluntarily enter into this Stipulation, ConsentAgreement,.and Waiver ofEvidentiary Hearing f'Agteement'') pertainirig to the violatitJris and penalties desc:dbed hetein.

A. Jurisdiction and Procedural Posture

L The Division is responsible foi- the administration and enforcement of compli:ance with federal safety perfol"mance applicabfo to ttanspo1tation and related pipeline facilities established under the Natural Gas Pipeline Safety Act of 1968 .and the Hazardous Liquid Pipeline Safety Act of 1979 (49 U.S.C. 6nl0 J et seq.) (the "PHMSA Standards") under Indiana Code ch. 8-1-22.5. The Division is also responsible for the administration and enf9rcernent of compliance with the pipeljne safety standai-ds adopted by the Commission for the State of Indiana in 170 IAC 5-3, which specifically adopts ruidadds to the federal safety stat1dal'ds.

2. CEINorth is a "public utility"as that term is definedinlnd. Code§ 8--l-2-1,and is a "person who engages in transportation of who owns, 9perates, or leases pipelitte facilities~' within the rneaning ofT11d. Code§ 8-I~22c5-6and subject to the PHMSA Standards and the jurisdiction of the Commission;

3. Division staffperfotms inspections and other activities to verify compliance with the, PHMSAStandards and isstJes Notices of Pro.bableViohitioh ("NOPVs',) and Notices of Proposed Penalties C'NOPPs") to pipeline operators subject to the Commission1 s jurisdiction in instances whet'e non,-compliance with the PHMSA Standards is alleged.

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Divisiortlnspection, Incident Report, NOPV,Response, NOPP

4, On or aboutMay 10, 2019, Division Director Boyd a11d Divisio11 Inspectors Fdend and Nea.l conducted an in-person fospectfort of CBI North's facilities at 490 Cramertown Loop; Martinsville, Indiana, 'i11response to a telephonic report ofa natmalgas pipeline incident

5; On or ahcn,1t May29, 2019, CEl North submitted a written Incident Report regal'ding the 'incident on May 10, 2019; whereinadditiona1 'information was provided to the, Division. A copy of the Incid<;rtt R¢pott is attached hereto as Attachment L

6. On or about August 9,2019, CBI North submitted a follow-tip to its Incident Report of May 29, 2019, pi-oviding additional information to the Divi1,io11 andJdentifying steps taken and to be taken ''fo tetraih field technicians in policies thatwould provide suppmt arid direction toreview procedures for possible safety issues." A copy of the follow-up to the Incident Repo1t ts attached hereto as Attachment 2.

7. TheDivision issued NOPVNo. l()939-2019S10 to CEiNorth on oraboutJ\/faroh 2, 2020. The NOPV alleged 8 probable vi<>lations.

1: Probable Violation 49 CFR.192.627-Tapping pipelines under pressure "Each fap. made o:n a pipeline under pressul'e mt1st be petformed by a cl'ew qua! ified to make hot taps.'; The operator employed a qualified contract crew to install a stopper fitting and machine to tap a:nd stop gas flow in a: steel main fota replace111ent project. Upon completion ofthe installation and stopping operation it became apparent thatthe gas flow had not been com.pletely<stopped. An employee ofthe operator entered the excavation to correct this.by tepositioningthe incorrectly·seated stopper cup. He maneuvered the, stopping machine handle to do so, buthis action actually resulted in inci·eased gas flow which was released and 1gnited. The employee was injuted, and it was revealed during a records review after the incident thatthe employee was not qualified to operateany partofthe stopping machine, of which the stopper cup handle isi:tpatt

2: Probable Violation 49 C:FR 192.805 - Qualification program - Qualification of Pipeline Personnel The ope1'ator's Operator Qualification program indicates the $pan of Control for 4'1

TDW stopping at one to one, meaning an imqualified individual may petfotn1 a task under observation. This is stdctly prohibited under 49 CFR 192.627. This task and similar tasks must be reviewed in the operators OQ Program: and modified to cotrectly represent the requirement in §192.627.

3: Probable Violation 49 CFR 192.805 - Qualification program ;.. Qualification of Pipeline Personnel The operatotconfirmed one person in the bell hole, a contract welder, was Operator Qualified irt 4h TDW stopping and was observing one person that was not qualified.

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While this is allowed uridet the operatot1s ptocedures, it is ho tallowed under 49 CFR 192.627. In addition; it is understood bytheDivisio11thatthe weldet was welding on another section of the pipe andnot observing the opeiato1;'s employee;

4: Probable Violation 49 CFRl92;805- Qualification program .. Qmdificatfon of Pipeline Personnel Theconti'actctewalong with the operator's inspector failed to follow the written procedure of Operator Qualification Task nurnber 192.1426.05. The performance Evaluation clearly states, "After attempting to blow down the µipelim.\ evaluate the amount of leakage pasttl1e sealing cup prior to beginning the cutting operation. If the leakage.is .in excess,determine if the sealing cup can be tightened or if the bloWdown fittings Will be sufficient, ot ifait movers wHlneed to be installed, initiate notification to ICEI North l local management." [CEI North] managernentwas not notified ofexcess leakage through the stoppet fitting; management was only notified upon the ignition of gas and the injury to the employee.

5: Probable Violation 49 CFR 192.605-Proceduralmanual for operations,maintenance, alld. erttergencfos [CEI No 1th] Inspector on thejoh failed to follow procedures by 1) enteting an excavation alone to stoppet off a high pressure main and 2) entering an excavation with noJ;>PE.

6:Prohable Violation 49 CFR 192.605--" Procedural manual for operations, maintenance, and efuergen~ies The contract crew nor the operator's inspector failedio follow the [CEI North] GCS 13. 7 procedufo by not installing a vent stack approximately 71 above grade.

7: :Probable Violation 49 CFR 1.99.105- D&A ... Drug tests required Post-accident drug testing of the ope1·atols inspectot should have been completed not Iatetthan 32 hours after the accident This did not occut

S: Probable Violation 49 CFR 199.225-D&A-'Akohol tests tequired Post-accldent(l) As sooi1 as pi'acticable followingan accident,·each operatot must test each surviving covered ernployee for alcohol if that employee1s performance of a covered function either contdbuted to the accide11tot cannot be completely discounted as a contributing factor to the accident. While there is reasontobelieve that the inspector'sactions may have contributed to the accident an alcohol test was not pe1f9rtned.

A copy of the N OPV is attached hereto as Attachment 3.

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8. CBTNolthxespondedto tlieNOPVinwl'iting on or aboutl'yiafoh 20{2020. CEI North provided additional information to the Division and identified steps taken and to he taken to address the issues raised by the Division. A copy of the CBI N 01th, s Response to the N OPV is attached hel'eto as Attachment 4;

9. The Division issued NO:PP No. 10939-2020720 to CEJ North on July 20, 2020. The NQPP alleged 8 violations.

2 Viola dons: 49 C.F.R. § 192.605, Procedtttal manual for operations~ maintenance,. and emergencies One day each

1 Violation: 49 C.F.R. § 192.627?. Tapp'ingpipelinesunder pressure Orte day

3 Violations: 49 C.F.R .. § 192.805; Qualification of Pipeline Pe1·sonnel: Qualification Ptogram One day each

1 Violation: 49C.F.R. s 199.105, Drug Tests Required One day

1 Violation: 49 C.F.R. § 199.225, Alcohol tests required One day

A copy ofthe NOPP is attached hefoto as Attachment 5.

:B. Agreed Civil Penalty

l 0. The Commissfonmay impose penalties against CBI North fot violations ofthe PHMSA Standards ofup to $25,000.00 for each violation for each day that the violation persisted, uptoa111axiinum of $1,000,000.00 for awlated series of violations. In totalthe Division discoveted 8 violations ofthe PHMSA Standards. All are subject to the $25,000 fine for each violation, per day they persisted. The totaldolia1· amount 6f these violatfons calculating the numbet of days included was $200~000.00.

l L CELNorth admits (subject to qualification ih thisAgree·ment)to the vfofat1011s alleged in the NOPV and NOPP and agtees to payment of a total monetary civil penalty of $150,000.00 to the general fund oftheStateoflndianafor the foregoing identified violations. :Payment of this civil penalty will be made within 30 days of approval by the Commission, and the civil penalty shall nothe recoverable by CEI North through its Commission-authorized rates and charges. The .PSD acknowledges the steps taken by CEl Noi-th to comply with post-accident DOT alcohol and drug testing requil-ements and recognizes that ce1tain hospitals may not conduct such testing in their emergency facilities. As such, the PSD waives a pe-11alty assessment for CBI North's violations of 49 C.F:R. § 199225 and 49 C.F.R. § 199 .105. However, in ru1 eftort to ensure compliance with post::.accident drug and alcohol testing requirements wherever

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possible, CEI No1th agrees to retrain all ofits employees presently ih the drug and alcohol testing pool and/or who are subject to 49 C.F.R. § 199.225 and 49 C.F.R. § 199. l 05 regarding post-accidenttesting obligations. Further, CEI Notth agrees that it will require all of its contractors who perform work for CEI North and who are subject to.the requirements of49 C.F.R; § 199,225 and 49 C.F.R. § 199.105 to retrain their employees regarding post-accident testing and provide documentation evideric:ing compliance with this requirement to CEI North. All aforementioned training programs shall be impleITiented by the end of FirstQua1ter 202 l.

C. Waiver of Public Hearing

12. Given its admission of the violations alleged in the NOPV and NOPP and its agreement to pay a statutory civil pehaltyfot those violations, and in the interest of administrative efficiency, CEI North waives its right to a public hearing pursuant to Ind. Code§§ 8-1-225-7(6) and 8-1-22.5-10 onthematterS alleged in theNOPVandNOPP andthe associated penalties. The Patties agree thatthe stipulated facts above together with the attachments hereto constitute an adequate evidentiary record upon which the.Commission may base an Order approving the agreed con·ective actions including paymehtofthe agreed monetary civil penalty.

D. Public Record

13. This agreement is a public record subject to diSclostit'e uponrequest under the Indiana. AcceSsto Public Records Act, Ind. Code ch. 5-14-3,

E. Stipulation

14.It is so stipulated and agreed this 24th day of f'ebruary202 l.

~:r;::;.!!!!. ..... ---VP Regional Opet'ations Indiana Gas Company, Inc., d/b/a CenterPoint Energy Indiana North

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Director, Pipeline Safety Indiana Utility Regulator