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<chapter num="02" heading="Enforcement and Penalties" title_num="20" subtitle_num="57">
  <regulation prefix="Regulation" num=".01" heading="Inspections.">
    <text>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.</text>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="Inspection Follow-Up — Specific Information Request.">
    <paragraph num="A.">
      <text>After a complaint, report, or inspection, the Division may send a gas company or gas master meter operator a specific information request.</text>
    </paragraph>
    <paragraph num="B.">
      <text>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).</text>
    </paragraph>
    <paragraph num="C.">
      <text>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.</text>
    </paragraph>
    <paragraph num="D.">
      <text>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.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="Reportable Incident Investigation.">
    <paragraph num="A.">
      <text>After a reportable incident, the Division may:</text>
      <paragraph num="(1)">
        <text>Interview personnel;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>View equipment or pipe;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Request issuance of a subpoena for production of equipment or pipe relating to the incident for independent preservation;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Order independent laboratory tests of equipment or pipe;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>View related documents; or</text>
      </paragraph>
      <paragraph num="(6)">
        <text>Take other investigative measures as needed to complete a comprehensive independent investigation.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>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.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".04" heading="Reportable Incident Testing.">
    <paragraph num="A.">
      <text>Testing.</text>
      <paragraph num="(1)">
        <text>After a reportable incident, a gas company or gas master meter operator shall conduct the following minimum tests:</text>
        <paragraph num="(a)">
          <text>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</text>
        </paragraph>
        <paragraph num="(b)">
          <text>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.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>When appropriate, a sample of the failed facility or equipment shall be selected for laboratory examination.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>Results Reported.</text>
      <paragraph num="(1)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Test results under §A(1) of this regulation shall include at a minimum the:</text>
        <paragraph num="(a)">
          <text>Time and date of the test;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Specific location of the pipeline or pipeline section tested, including a suitable map of the route of the pipeline;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Results; and</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Name of the person responsible for testing.</text>
        </paragraph>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".05" heading="Notice of Probable Violation.">
    <paragraph num="A.">
      <text>General.</text>
      <paragraph num="(1)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The NOPV may contain a proposed compliance order.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>A gas company or gas master meter operator shall respond in writing within 30 days after receipt of a NOPV.</text>
      </paragraph>
      <paragraph num="(4)">
        <text>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.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>Contents of Notice of Probable Violation. A NOPV shall include:</text>
      <paragraph num="(1)">
        <text>A statement of the statute, regulation, or rule allegedly violated by a gas company or gas master meter operator;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>A description of the evidence indicating a possible violation;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Notice of response options available to the gas company or gas master meter operator;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>If appropriate, the amount of the proposed civil penalty and the maximum civil penalty applicable under law; and</text>
      </paragraph>
      <paragraph num="(5)">
        <text>If appropriate, a statement of the remedial action being sought in a compliance order.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Response Options. A gas company or gas master meter operator shall respond to the NOPV as follows:</text>
      <paragraph num="(1)">
        <text>If a NOPV contains a proposed compliance order, a gas company or gas master meter operator may:</text>
        <paragraph num="(a)">
          <text>Agree to the proposed compliance order,</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Request the execution of a consent order,</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Object to the proposed compliance order and submit written explanations, information, or other materials in answer to the allegations in the notice, or</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Request a hearing under Public Utilities Article, Annotated Code of Maryland; and</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>If the NOPV contains a proposed civil penalty, a gas company or gas master meter operator may:</text>
        <paragraph num="(a)">
          <text>Pay the penalty,</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Submit an offer in compromise of the proposed civil penalty,</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Object to the proposed civil penalty and submit a written explanation, information, or other material to mitigate the proposed civil penalty, or</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Request a hearing under Public Utilities Article, Annotated Code of Maryland.</text>
        </paragraph>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".06" heading="Review by Chief Engineer.">
    <text>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.</text>
  </regulation>
  <regulation prefix="Regulation" num=".07" heading="Consent Order.">
    <paragraph num="A.">
      <text>Before the issuance of a compliance order, the Division may execute a consent order jointly with a gas company or gas master meter operator.</text>
    </paragraph>
    <paragraph num="B.">
      <text>An executed consent order shall contain:</text>
      <paragraph num="(1)">
        <text>An admission by a gas company or gas master meter operator of all jurisdictional facts; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".08" heading="Civil Penalties.">
    <paragraph num="A.">
      <text>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.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Penalty Considerations. In proposing a civil penalty, the Division shall consider the criteria stated in Public Utilities Article, §13-203, Annotated Code of Maryland.</text>
    </paragraph>
    <paragraph num="C.">
      <text>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.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".09" heading="Hazardous Facility Notice.">
    <paragraph num="A.">
      <text>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:</text>
      <paragraph num="(1)">
        <text>The equipment, material, or technique used in the construction of the pipeline facility or its components poses a hazard to life or property; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The operation of the pipeline facility poses a hazard to life or property.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>Determining Factors. In determining a facility hazardous to life or property, the Division may consider the following:</text>
      <paragraph num="(1)">
        <text>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;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>The location of the pipeline facility;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>The climatic and geologic conditions associated with the area;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>The population, population density, and growth patterns of the area; or</text>
      </paragraph>
      <paragraph num="(6)">
        <text>The adequacy of records demonstrating absence of a hazardous condition.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Notice.</text>
      <paragraph num="(1)">
        <text>If the Division finds a pipeline facility to be hazardous to life or property, the chief engineer shall issue a hazardous facility notice.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>A hazardous facility notice shall provide an opportunity for a Commission hearing.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>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.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>Content.</text>
      <paragraph num="(1)">
        <text>A hazardous facility notice shall contain:</text>
        <paragraph num="(a)">
          <text>A finding that the pipeline facility is hazardous to life or property;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>The facts on which the finding is based;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>The legal basis of the notice;</text>
        </paragraph>
        <paragraph num="(d)">
          <text>The nature and description of the particular corrective action required of the gas company or gas master meter operator; and</text>
        </paragraph>
        <paragraph num="(e)">
          <text>The date by which the required action shall be taken or completed and, when appropriate, the duration of the notice.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <annotations>
    <annotation type="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</annotation>
    <annotation type="History" subtype="Administrative History">Effective date: December 9, 1991 (18:24 Md. R. 2645)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .01 amended effective March 26, 2007 (34:6 Md. R. 629)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .04A amended effective January 15, 1996 (23:1 Md. R. 36)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .05A amended effective March 26, 2007 (34:6 Md. R. 629)</annotation>
  </annotations>
</chapter>