MINUTES October 28, 2010

MINUTES
South Dakota One Call Notification Board
Enforcement Committee Conference Call
October 28, 2010

OC10-005 – Northwestern Energy vs. Rexwinkle Concrete
OC10-006 – Northwestern Energy vs. Scott Olson Digging, Inc.
OC10-007 – Northwestern Energy vs. Scott Olson Digging, Inc.
OC10-008 – Northwestern Energy vs. Scott Olson Digging, Inc.

Enforcement Committee Members in attendance: Dan Kaiser, Qwest Communications; Erin Hayes,
Midcontinent Communications; Terry Larson, Heavy Constructors; Gene Solseth, Hills Septic; Fay
Jandreau, Midstate Communications; Larry Janes, Executive Director. Also in attendance: Sara Dannen,
Legal Counsel to NorthWestern Energy; Craig Fergen, NorthWestern Energy.

Larry Janes provided a description of the Enforcement Committee process, including that this is a legal
proceeding, no comments would be taken from either party during the call, and that the determination
of the outcome of the call would be made only from written documentation provided in the complaint
and the rebuttal information received from the company the complaint was filed against.

OC10-005 – NorthWestern Energy vs. Rexwinkle Concrete
Larry Janes provided a synopsis of the complaint and the response:

  • The complaint alleges that Rexwinkle Concrete hit natural gas distribution lines on 608 North
    Minnesota Street at approximately 3:30 pm on August 31, 2010. Two homes were evacuated and
    Mitchell, SD public responders closed the street to vehicles and pedestrians. The estimated property
    damage was $1,000.
  • Rexwinkle Concrete responded that the line was hit when setting forms and the depth was shallow.
    The company doing the excavation work had not called in locates.
  • Rexwinkle Concrete has had no previous complaints filed against it through SD One Call.

Various members of the Committee expressed concern that Rexwinkle Concrete was working from
another excavator’s locate tickets, instead of his own as required in SDCL 49-7 A-5 and that Rexwinkle
Concrete was concerned that the depth of the gas line was an issue. Another concern was that this
damage was extensive enough that it put the public at risk.

The Enforcement Committee finding is that probable cause does exist that Rexwinkle Concrete did
violate SDCL 49-7A-5 by performing excavation work without first notifying SD One Call. Dan Kaiser made a
motion to assess a penalty of $1,000, with $500 suspended, with the understanding that Rexwinkle
Concrete fully complies with SDCL 49-7A and Article 20:25 for twelve months, that Rexwinkle Concrete
should be aware that any future violations of SDCL 49-7A and  Article 20:25 within twelve months from
the date of the Final Order are subject to additional penalties up to a maximum of $5,000 under
SDCL 49-7A-18 and that Rexwinkle Concrete must make payment within 30 days of the Final Order. Erin
Hayes seconded the motion. MOTION CARRIED BY UNANIMOUS VOTE.

OC10-006 – NorthWestern Energy vs. Scott Olson Digging, Inc.
Larry Janes provided a synopsis of the complaint and the response:

  • The complaint alleges that Scott Olson Digging, Inc. struck a gas line, damaging the pipe and pipe coat
    wrap at Lincoln Ave NW (nearest intersection: Third Street) Huron, SD, and that NorthWestern Energy
    had not been notified as required by SDCL 49-7A-12.
  • Scott Olson Digging, Inc. responded by stating, the line was to be relocated by NorthWestern Energy
    and was in contact with Doug Isackson about the line being relocated numerous times.
  • Scott Olson Digging, Inc. has had no previous complaints filed against it through SD One Call.

Concern was expressed by Committee members by the lack of response by Scott Olson Digging, Inc.

The Enforcement Committee finding is that probable cause does exist that Scott Olson Digging, Inc. did
violate SDCL 49-7A-12 by damaging an underground gas pipe and pipe coat wrap and then not notifying
NorthWestern Energy. Gene Solseth made a motion to assess a penalty of $1,000, with $0 suspended.
Dan Kaiser seconded the motion. MOTION CARRIED BY UNANIMOUS VOTE.

OC10-007 – NorthWestern Energy vs. Scott Olson Digging, Inc.
Larry Janes provided a synopsis of the complaint and the response:

  • The complaint alleges that Scott Olson Digging, Inc. struck a gas line, damaging a 90 degree elbow
    and that NorthWestern Energy had not been notified as required by SDCL 49-7A-12.
  • Scott Olson Digging Inc. responded by stating “OCI0-007 Call 605-354-2313 to discuss.”

The Enforcement Committee was concerned by the lack of response by Scott Olson Digging, Inc.

The Enforcement Committee finding is that probable cause does exist that Scott Olson Digging, Inc did
violate SDCL 49-7A-12 by damaging a 90 degree elbow and pipe, and then not notifying NorthWestern Energy.
Erin Hayes made a motion to assess a penalty of $5,000, with $2,500 suspended. Terry Larson seconded
the motion. MOTION CARRIED BY UNANIMOUS VOTE.

OC10-008 – NorthWestern Energy vs. Scott Olson Digging, Inc.
Larry Janes provided a synopsis of the complaint and the response:

  • The complaint alleges that Scott Olson Digging, Inc. began digging on Lawnridge Ave. SE from Third
    Street SE to Seventh Street SD, Huron on August 27, 2010 prior to the due date on the locate ticket. No copy of the locate ticket was provided as evidence.
  • Scott Olson Digging Inc. responded with, “Previous markings were still on site from the first One Call
    ticket. This ticket was a re-mark”. No copy of the locate ticket (first or re-mark) was provided as
    evidence.

The Enforcement Committee finding is that there is not enough evidence to make a ruling. Gene Solseth
made a motion to request additional information from both parties, including a copy of the tickets. Dan
Kaiser Seconded. MOTION CARRIED BY UNANIMOUS VOTE. Both parties have until November 15,
2010 to provide the requested information.

Being no further business, the meeting adjourned.