Chapter 02. Enforcement and Penalties
Regulation .01 Inspections.LinkCopy Citation
The Division may conduct periodic inspections of records and property in the possession, custody, or control of a gas company or gas master meter operator to determine compliance with the federal Natural Gas Pipeline Safety Act, 49 U.S.C. §1671 et seq., as amended, which is incorporated by reference, or Public Utilities Article, Annotated Code of Maryland.
Regulation .02 Inspection Follow-Up — Specific Information Request.LinkCopy Citation
A.
After a complaint, report, or inspection, the Division may send a gas company or gas master meter operator a specific information request.
B.
A gas company or gas master meter operator shall respond within 5 working days after receipt of a specific information request relating to a possible reportable incident under COMAR 20.55.01.04B(9).
C.
Except as provided under §B of this regulation, a gas company or gas master meter operator shall respond within 30 days after receipt of a specific information request.
D.
The Commission may waive the requirements of §B or C of this regulation upon written request from a gas company or gas master meter operator demonstrating sufficient cause.
Regulation .03 Reportable Incident Investigation.LinkCopy Citation
A.
After a reportable incident, the Division may:
(1)
Interview personnel;
(2)
View equipment or pipe;
(3)
Request issuance of a subpoena for production of equipment or pipe relating to the incident for independent preservation;
(4)
Order independent laboratory tests of equipment or pipe;
(5)
View related documents; or
(6)
Take other investigative measures as needed to complete a comprehensive independent investigation.
B.
A gas company or gas master meter operator shall preserve all equipment or piping which may have contributed to an incident until the investigation by the Division has been completed.
Regulation .04 Reportable Incident Testing.LinkCopy Citation
A.
Testing.
(1)
After a reportable incident, a gas company or gas master meter operator shall conduct the following minimum tests:
(a)
The perimeter of the area involved in the incident shall be leak surveyed using a subsurface gas detection survey as prescribed in the GPTC Guide For Gas Transmission and Distribution Piping Systems 1990-91, Volume One, Guide Material Appendix G-11 or G-11A, which is incorporated by reference in COMAR 20.55.02.02; and
(b)
All piping directly associated with the incident, or which may have contributed to the incident, shall be pressure tested, unless evidence clearly indicates the cause and origin of the incident.
(2)
A gas regulator or meter serving a structure involved in the incident shall be properly tagged and stored in a secured area for testing at the earliest practical time.
(3)
When appropriate, a sample of the failed facility or equipment shall be selected for laboratory examination.
B.
Results Reported.
(1)
A gas company or gas master meter operator shall report the results of any test under §A of this regulation to the Division within 10 days of the completion of the test.
(2)
Test results under §A(1) of this regulation shall include at a minimum the:
(a)
Time and date of the test;
(b)
Specific location of the pipeline or pipeline section tested, including a suitable map of the route of the pipeline;
(c)
Results; and
(d)
Name of the person responsible for testing.
Regulation .05 Notice of Probable Violation.LinkCopy Citation
A.
General.
(1)
The Division may issue a NOPV upon finding good cause to believe a violation of the federal Natural Gas Pipeline Safety Act, 49 U.S.C. §1671 et seq., as amended, which is incorporated by reference, or Public Utilities Article, Annotated Code of Maryland, has occurred.
(2)
The NOPV may contain a proposed compliance order.
(3)
A gas company or gas master meter operator shall respond in writing within 30 days after receipt of a NOPV.
(4)
The Commission may waive the requirements of §A(3) of this regulation upon written request from a gas company or gas master meter operator demonstrating sufficient cause.
B.
Contents of Notice of Probable Violation. A NOPV shall include:
(1)
A statement of the statute, regulation, or rule allegedly violated by a gas company or gas master meter operator;
(2)
A description of the evidence indicating a possible violation;
(3)
Notice of response options available to the gas company or gas master meter operator;
(4)
If appropriate, the amount of the proposed civil penalty and the maximum civil penalty applicable under law; and
(5)
If appropriate, a statement of the remedial action being sought in a compliance order.
C.
Response Options. A gas company or gas master meter operator shall respond to the NOPV as follows:
(1)
If a NOPV contains a proposed compliance order, a gas company or gas master meter operator may:
(a)
Agree to the proposed compliance order,
(b)
Request the execution of a consent order,
(c)
Object to the proposed compliance order and submit written explanations, information, or other materials in answer to the allegations in the notice, or
(d)
Request a hearing under Public Utilities Article, Annotated Code of Maryland; and
(2)
If the NOPV contains a proposed civil penalty, a gas company or gas master meter operator may:
(a)
Pay the penalty,
(b)
Submit an offer in compromise of the proposed civil penalty,
(c)
Object to the proposed civil penalty and submit a written explanation, information, or other material to mitigate the proposed civil penalty, or
(d)
Request a hearing under Public Utilities Article, Annotated Code of Maryland.
Regulation .06 Review by Chief Engineer.LinkCopy Citation
If a gas company or gas master meter operator objects to the proposed compliance order or civil penalty and submits a written explanation, information, or other materials in response to a NOPV, the chief engineer shall review the submissions and determine whether to negotiate further, modify, or withdraw the NOPV, or file a complaint under Public Utilities Article, §3-102, Annotated Code of Maryland.
Regulation .07 Consent Order.LinkCopy Citation
A.
Before the issuance of a compliance order, the Division may execute a consent order jointly with a gas company or gas master meter operator.
B.
An executed consent order shall contain:
(1)
An admission by a gas company or gas master meter operator of all jurisdictional facts; and
(2)
A description of any action required by a gas company or gas master meter operator and the time by which the actions shall be accomplished.
Regulation .08 Civil Penalties.LinkCopy Citation
A.
Procedure. Following an investigation and a determination by the Division that there exists good cause to believe that a gas company or gas master meter operator violated minimum pipeline safety requirements, the Division may assess or negotiate a civil penalty under Public Utilities Article, §13-203, Annotated Code of Maryland.
B.
Penalty Considerations. In proposing a civil penalty, the Division shall consider the criteria stated in Public Utilities Article, §13-203, Annotated Code of Maryland.
C.
Payment Procedures. A gas company or gas master meter operator shall pay a civil penalty that has been proposed or compromised by submitting to the Commission a certified check or money order in the correct amount, payable to the Maryland Public Service Commission.
Regulation .09 Hazardous Facility Notice.LinkCopy Citation
A.
General. After an inspection, report, or complaint, the Division may find a particular facility to be hazardous to life or property if the Division determines that:
(1)
The equipment, material, or technique used in the construction of the pipeline facility or its components poses a hazard to life or property; or
(2)
The operation of the pipeline facility poses a hazard to life or property.
B.
Determining Factors. In determining a facility hazardous to life or property, the Division may consider the following:
(1)
The characteristics of the pipe and other equipment used in a pipeline facility, including age, manufacturer, physical properties, resistance to corrosion and deterioration, and methods of manufacture, construction, and assembly;
(2)
The nature of the materials transported by the facility, including the corrosive and deteriorative qualities, and the sequence in which the materials are transported through the pipeline;
(3)
The location of the pipeline facility;
(4)
The climatic and geologic conditions associated with the area;
(5)
The population, population density, and growth patterns of the area; or
(6)
The adequacy of records demonstrating absence of a hazardous condition.
C.
Notice.
(1)
If the Division finds a pipeline facility to be hazardous to life or property, the chief engineer shall issue a hazardous facility notice.
(2)
A hazardous facility notice shall provide an opportunity for a Commission hearing.
(3)
The chief engineer may request that the Commission issue an order setting a hearing date and finalizing a hazardous facility order before a hearing under this section, if failure to do so would result in the likelihood of serious harm to life or property.
D.
Content.
(1)
A hazardous facility notice shall contain:
(a)
A finding that the pipeline facility is hazardous to life or property;
(b)
The facts on which the finding is based;
(c)
The legal basis of the notice;
(d)
The nature and description of the particular corrective action required of the gas company or gas master meter operator; and
(e)
The date by which the required action shall be taken or completed and, when appropriate, the duration of the notice.
(2)
Corrective action under §D(1)(d) of this regulation may include suspended or restricted use of the facility, physical inspection, testing, repair, replacement, or other action as appropriate.
Chapter annotations
Authority: State Government Article, §7-207(a); Public Utilities Article, §§2-113, 2-117(a), 2-121, 5-101, 5-304, 11-102, 12-101—12-113, and 13-203;
Annotated Code of Maryland
Annotated Code of Maryland
History: Effective date: December 9, 1991 (18:24 Md. R. 2645)
History: Regulation .01 amended effective March 26, 2007 (34:6 Md. R. 629)
History: Regulation .04A amended effective January 15, 1996 (23:1 Md. R. 36)
History: Regulation .05A amended effective March 26, 2007 (34:6 Md. R. 629)