Sept. 16, 2009
Docket number: PG-080097

OLYMPIA, Wash. – Calling for frequent progress reports and a shorter timeframe for the city to improve safety of its natural gas distribution system, state pipeline regulators today allowed an agreement to become effective between the city of Enumclaw and staff members of the Washington Utilities and Transportation Commission (UTC).

The UTC is requiring the city to complete the natural gas safety improvements within two years instead of three. The utility also must make frequent progress reports to address the numerous safety violations cited in a Feb. 10 UTC staff complaint. That document alleges serious safety violations against the city for repeatedly ignoring state laws by failing to make necessary improvements in the operations of its natural gas system. If the city fails to meet the terms of the agreement, Enumclaw could face all or part of about a $2 million penalty.

“The city has a history, extending as far back as 16 years, of not complying with the commission’s statutes and rules regarding natural gas safety,” said Administrative Law Judge Patricia Clark. “Given the fact that many of the violations noted in the original complaint are repeat violations and have been ongoing for a number of years, the commission is interested in having the work completed as quickly as possible.”

The city said about 70 percent of the work required in the settlement agreement filed in June has been completed, although a follow-up inspection by the UTC staff has not yet been completed to verify that information. The judge approved the agreement on condition that the city complete the remaining work in two years rather than three. The city also must file quarterly progress reports with the commission to show the utility’s progress in meeting terms of the settlement.

Under the settlement, the city agreed to a comprehensive plan to address the operations and maintenance of its natural gas pipeline, including:

· Documenting regular repairs or inspections on the pipeline.
· Updating maps and operations manual.
· Providing required safety training to employees.
· Conducting routine inspections for corrosion.
· Maintaining accurate gas-leak records.
· Reporting underground damage to pipes.
· Performing pressure tests.
· Developing a quality-assurance program for safety-related activities.

UTC staff filed the settlement agreement with the city June 26 in response to the complaint filed by commission staff in February against the city of Enumclaw citing violations of gas safety rules and recommending penalties. A 2008 inspection revealed numerous unsafe conditions that UTC staff had identified in earlier inspections.

Enumclaw is one of three cities in the state to manage its own natural gas system. The others are Buckley and Ellensburg. The city supplies natural gas to more than 4,000 customers. The city council, not the UTC, sets the natural gas rates for its residential, business and industrial customers.

The UTC monitors the city’s compliance with federal and state pipeline safety regulations for Enumclaw’s nearly 88 mile natural-gas distribution system in Washington. The commission has the authority to levy fines against operators found out of compliance. UTC pipeline safety staff perform regular inspections of the state’s 26 pipeline operators.