clark hill plc suite 200 birmingham, mi 48009
TRANSCRIPT
219971156.2 45617/186747
Clark Hill PLC
151 S. Old Woodward Avenue
Suite 200
Birmingham, MI 48009
Douglas R. Kelly T 248.642.9692
T 248.988.5890 F 248.642.2174
F 248.988.2337
Email: [email protected] clarkhill.com
July 25, 2018
VIA ELECTRONIC CASE FILINGMs. Kavita KaleExecutive SecretaryMichigan Public Service Commission7109 W. Saginaw HighwayLansing, Michigan 48917
Re: MPSC Case No. U-17953:In the Matter of the Complaint of Midland Cogeneration Venture LimitedPartnership Against Consumers Energy Company
Dear Ms. Kale:
Enclosed for filing in the above-referenced case are Midland Cogeneration VentureLimited Partnership’s Reply to Consumers Energy Company’s Reply to Midland CogenerationVenture Limited Partnership’s Supplement to Second Notice of Inspection as well as a Proofof Service.
Very truly yours,
CLARK HILL PLC
Douglas R. Kelly
DRK/lllm
cc w/encl.: Hon. Sharon L. Feldman, ALJParties of Record
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STATE OF MICHIGAN
BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION
* * * * *
In the matter of the Complaint of MIDLANDCOGENERATION VENTURE LIMITEDPARTNERSHIP against CONSUMERSENERGY COMPANY
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Case No. U-17953Sharon L. Feldman, ALJ
MIDLAND COGENERATION VENTURE LIMITED PARTNERSHIP’SREPLY TO CONSUMER ENERGY COMPANY’S RESPONSE TO
MIDLAND COGENERATION VENTURE LIMITED PARTNERNSHIP’SSUPPLEMENT TO SECOND NOTICE OF INSPECTION
Midland Cogeneration Venture Limited Partnership (“MCV”) replies to Consumer
Energy’s Response to MCV’s Supplement to Second Notice of Inspection (“Response”) and
addresses all of the concerns and outstanding issues identified by Consumers Energy as follows:
Part I Onsite Testing (Field Examination)
On-Site Testing Team: Consumers Energy required a copy of the full Curriculum Vitae
(“CV”) or Resume of each of the technical team members which MCV’s expert will participate
in any on-site testing. Those CVs and/or resumes and biographies are attached as Exhibit A.
I. Close Interval Survey.
In its Response, Consumers raises two concerns. First, Consumers requests operator
qualifications for the on-site testing team related to safety concerns. That information has been
provided in Exhibit A. Moreover, cathodic protection rectifier or other impressed current power
source must be inspected at least six times each calendar year to ensure that it is operating
properly. In addition, CIS is a non-destructive test and does not impose any risk to the operation
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of the pipeline. Second, Consumers raises a concern for maintaining “ideal” right-of-way
conditions. Given that the parties will be selecting the areas for the testing, this concern can be
adequately addressed.
II. Soil Resistivity and Barne’s Layer Testing and Analysis.
In its Response, Consumers requested operator qualifications and testing under
certain conditions. MCV operator qualifications have been provided to Consumers Energy
(see Exhibit A). In addition, MCV accepts conditions as requested and identified on page 3
of the Response.
III. Soil Sampling And Field Testing Corrosivity.
Consumers identified testing under certain conditions. MCV accepts the conditions
as requested and identified on page 3 of the Response.
IV. Pipeline Coating Evaluation in Digs Selected for Disbondment and CP Shielding.
Consumers raised four concerns. First, Consumers raised the concern of operator
qualifications, which has been addressed and supplied by MCV (see Exhibit A). Second,
Consumers raises concerns about excavations on a live transmission pipeline. However,
qualified operators excavate on live transmission pipelines on a regular basis, including
Consumer’s employees and contractors. Accordingly, given the qualifications of MCV’s
experts, this concern has been addressed. Third, Consumers was unclear as to the extent or
location of CIS that will be performed. To be clear, there will only be three areas of the pipe
selected for CIS. Fourth, Consumers is concerned regarding how the coating will be repaired
after inspection. However, this is a non-destructive test so that coating repair is out of the scope
of this inspection and/or will not be required. Furthermore, for clarity, there is no planned
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cutting of samples from the pipeline. Accordingly, all of Consumers concerns are addressed and
resolved.
V. Further Response.
Consumers seeks an indemnification from MCV and its expert and the technical team
conducting the inspection. However, given that this is a non-destructive on-site inspection and
given that the law would protect Consumers and its employees from any negligence by MCV or
its experts or the technical team, there is no need for indemnification particularly to the extent
that Consumers is responsible for any damage to equipment, the pipeline or its operation.
Part II Laboratory Testing Protocol
Any concerns related to qualifications has been addressed. See Exhibit A. To avoid bias, the
laboratory testing of collected samples should be performed at a third party lab acceptable to all
parties involved with Matergenics personnel oversight. It is not acceptable to have Consumers
perform the testing.
I. Metallurgical Failure Evaluation
Consumers requests as a condition of evaluation that either its personnel perform the
testing or that the testing is sent to a lab that it uses. However, to avoid bias, the laboratory
testing of collected samples should be performed at a third party lab acceptable to all parties
involved with Matergenics personnel oversight.
II. Soil Corrosivity Determination
The concerns raised by Consumers are addressed above.
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In conclusion, MCV requests that the parties take the next action steps and (i) schedule a
conference call with experts involved to discuss the inspection and (ii) schedule the second
inspection for late August or early September 2018.
Respectfully submitted,
CLARK HILL PLC
By: ________________________________Douglas R. Kelly (P49856)Linda M. Watson (P45320)Jordan S. Bolton (P66309)Attorneys for Midland CogenerationVenture Limited Partnership151 S. Old Woodward, Suite 200Birmingham, MI 48009
Dated: July 25, 2018 (248) 988-5890
EXHIBIT A
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STATE OF MICHIGAN
BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION
* * * * *
n the matter of the Complaint of MIDLANDCOGENERATION VENTURE LIMITEDPARTNERSHIP against CONSUMERSENERGY COMPANY.
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Case No. U-17953Sharon L. Feldman, ALJ
PROOF OF SERVICE
STATE OF MICHIGAN )) ss
COUNTY OF OAKLAND )
Douglas R. Kelly, being first duly sworn, deposes and says that on July 25, 2018, he did
cause to be served Midland Cogeneration Venture Limited Partnership’s Reply to Consumers
Energy Company’s Response to Midland Cogeneration Venture Limited Partnership’s
Supplement to Second Notice of Inspection and this Proof of Service, in the above docket, via
electronic mail, on the persons identified on the attached service list.
___________________________________Douglas R. Kelly
Subscribed and sworn to before methis 19th day of July, 2018.
______________________________________Linda L. McCauley, Notary PublicOakland County, MIMy Commission expires: October 18, 2019Acting in Oakland County
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SERVICE LISTMPSC Case No. U-17953
Administrative Law JudgeSharon L. Feldman, ALJAdministrative Law Judges Division7109 West Saginaw HighwayP. O. Box 30221Lansing, MI 48909Email: [email protected]
Counsel for MPSC StaffAmit T. Singh, Esq.Assistant Attorney GeneralPublic Service DivisionMichigan Public Service Commission7109 W Saginaw HighwayLansing, MI 48917Email: [email protected]
Counsel for Midland Cogeneration VentureLimited PartnershipDouglas R. KellyLinda M. WatsonJordan S. BoltonLauren K. DutcherClark Hill PLC151 S. Old Woodward Ave., Suite 200Birmingham, MI 48009(248) 988-5890Email: [email protected]
[email protected]@[email protected]
Gordon A. CoffeeWinston & Strawn LLP1700 K Street, NWWashington, DC 20006Email: [email protected]
Charles E. Dunn (P54791)100 E. Progress PlaceMidland, MI 48640Email: [email protected]
Counsel for Consumers Energy CompanyH. Richard Chambers, Esq.Theresa A. G. StaleyConsumers Energy CompanyOne Energy PlazaJackson, MI 49201Email: [email protected]
[email protected]@cmsenergy.com