DE 98-228 R. M. PIPER INC. Hearing On Violation of Underground Utility Damage Prevention Program Order Approving Consent Agreement O R D E R N O. 23,159 March 9, 1999 Appearances: Richard M. Piper of R. M. Piper, Inc. and Larry Eckhaus, Esq. for the Staff of the New Hampshire Public Utilities Commission. On October 14, 1998, EnergyNorth Natural Gas, Inc. (ENGI), in accordance with N.H. Admin. Rules, Puc 803.02(e), reported damage to underground facilities at 991 Mammoth Rd. and 721 Mammoth Rd. in Manchester, N.H. The report alleged that on September 9, 1998, and September 11, 1998 R. M. Piper, Inc., (Piper), hit 60 PSIG plastic and copper services, respectively, that were clearly marked. On November 4, 1998, the New Hampshire Public Utilities Commission Staff (Staff), pursuant to Puc 805.01, issued Notices of Probable Violation (NOPV) Nos. 98060 and 98061, referencing RSA 374:55, IV-a, by certified mail, to Piper. The NOPVs were received on November 5, 1998. Pursuant to NHPUC Part Puc 805.02, the Respondent had 30 days to respond to the NOPVs. By letter dated November 9, 1998, Piper requested an informal conference. This informal conference was held on December 8, 1998. Both Piper and ENGI were present and after hearing information from the parties, an agreement was accepted by Staff to rescind NOPV 98060, contingent upon Piper's holding a training session with its employees regarding the Underground Utility Damage Prevention Program, and that a Notice of Violation (NOV) would be issued on 98061 and that the fine of $200.00 would be paid by the Respondent. The NOV for 98061 was sent on December 9, 1998 and received by Respondent on December 10, 1998. Nevertheless, the Respondent requested a hearing before the Commission by letter dated December 16, 1998. A hearing was held on February 9, 1999 before a Hearings Examiner. Mr. Piper admitted that he caused the damage alleged in the NOPVs, but testified that, in his opinion, the gas service line was too shallow and that should mitigate the fine proposed by Staff with regard to NOPV No. 98061. Mr. Piper admitted that he did not utilize equipment and procedures in the tolerance zone around the facility marking that would ensure the facility would not sustain damage as required by Puc 806.01(g). Richard G. Marini, P.E., the Safety Division Administrator testified that the Underground Utility Damage Prevention Program is "depth-blind" requiring certain procedures within a tolerance zone equal to 36 inches plus the width of the underground facility, Puc 806.01(a)(2), regardless of depth. According to Mr. Marini, these violations occurring so closely together in both time and location warrant the fines that were proposed. After the hearing, Staff and Piper agreed to a Consent Agreement which was subsequently executed on February 23, 1999. That Agreement provided for, inter alia, that a violation of New Hampshire statutes occurred as described in the Notices of Probable Violation No. 98060 and 98061, both dated November 4, 1998; that with regard to NOPV 98060, Piper shall hold a training session to be attended by all its employees regarding the Underground Utility Damage Prevention Program; and that a civil penalty of $200 would be paid by Piper regarding NOV 98061. The Commission approves the Consent Agreement. RSA 374:55,IV-b provides If marked underground facilities are damaged, the excavator shall be subject to a civil penalty of up to $500 and liable for the cost of repairs for the damage. Because underground utility mains and lines are at various depths which may change over time for many reasons, the Underground Utility Damage Prevention Program is "depth-blind" requiring certain procedures within a tolerance zone. Puc 806.01(g) specifically mentions hand shoveling and vacuum excavation as the type of methods which could be used to ensure the facilities are not damaged. In this instance, it is clear that Piper did not utilize the appropriate procedures and, hence, is liable under the statute. Although a fine of up to $500 could have been assessed, the Commission believes that, under the circumstances, the agreed to penalty, along with the training session is sufficient. However, further violations may result in larger fines in the future. Based upon the foregoing, it is hereby ORDERED, that the Consent Agreement entered into by Staff and R.M. Piper is hereby approved; and it is FURTHER ORDERED, that with regard to NOPV 98060, R.M. Piper, Inc. shall hold a training session to be attended by all its employees regarding the Underground Utility Damage Prevention Program; and it is FURTHER ORDERED, that a civil penalty of $200 is imposed on R.M. Piper for NOPV 98061; and it is FURTHER ORDERED, that R.M. Piper shall be liable to EnergyNorth for the cost of repairs for the damage to utility facilities referenced in both NOPV 98060 and NOPV 98061. By order of the Public Utilities Commission of New Hampshire this ninth day of March, 1999. Douglas L. Patch Susan S. Geiger Nancy Brockway Chairman Commissioner Commissioner Attested by: Thomas B. Getz Executive Director and Secretary