{"operation":"document","citation":"CPF 12022048NOA","title":"NEPTUNE LNG, LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-08-18","effective_on":null,"summary":"CLOSED notice of amendment citing 191.22(c), 192.605(b)(1), 192.605(b)(2), 192.605(b)(3), 192.605(b)(8), 192.605(c)(2), 192.605(c)(3), 192.605(e), 192.613(a), 192.615(a), 192.615(a)(1), 192.615(a)(4), 192.615(a)(6), 192.615(a)(8), 192.805(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022048noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022048noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022048noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12022048NOA","body":"Notice of Amendment involving NEPTUNE LNG, LLC. PHMSA's enforcement data identifies the cited regulations as 191.22(c),  192.605(b)(1),  192.605(b)(2),  192.605(b)(3),  192.605(b)(8),  192.605(c)(2),  192.605(c)(3),  192.605(e),  192.613(a),  192.615(a),  192.615(a)(1),  192.615(a)(4),  192.615(a)(6),  192.615(a)(8),  192.805(a). The case was opened on 2022-08-18 and is reported as closed as of 2023-06-01. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12022048NOA_Closure Letter_06012023_(21-199005).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022048NOA/12022048NOA_Closure%20Letter_06012023_(21-199005).pdf\n\n12022048NOA_Closure Letter_06012023_(21-199005)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022048NOA/12022048NOA_Closure%20Letter_06012023_(21-199005)_text.pdf\n\n12022048NOA_Notice of Amendment_08182022_(21-199005).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022048NOA/12022048NOA_Notice%20of%20Amendment_08182022_(21-199005).pdf\n\n12022048NOA_Notice of Amendment_08182022_(21-199005)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022048NOA/12022048NOA_Notice%20of%20Amendment_08182022_(21-199005)_text.pdf\n\n12022048NOA_Operator Response to Notice_12192022_(21-199005).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022048NOA/12022048NOA_Operator%20Response%20to%20Notice_12192022_(21-199005).pdf\n\n12022048NOA_Notice of Amendment_08182022_(21-199005)_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nAugust 18, 2022\nMr. Andre Cangucu\nPresident and Chief Executive Officer\nNeptune LNG, LLC\n1360 Post Oak Boulevard #400\nHouston, Texas 77056\nCPF 1-2022-048-NOA\nDear Mr. Cangucu:\nFrom June 7, 2021 through June 11, 2021, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected\nNeptune LNG, LLC’s (Neptune) procedures for its underwater facilities located on the outer\ncontinental shelf adjacent to Massachusetts Bay.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nNeptune’s written procedures, as described below:\n1. § 191.22 National Registry of Operators.\n(a) …\n(c) Changes. Each operator of a gas pipeline, gas pipeline facility,\nUNGSF, LNG plant, or LNG facility must notify PHMSA electronically\nthrough the National Registry of Operators at\nhttps://portal.phmsa.dot.gov of certain events.\nNeptune’s written reporting procedures were inadequate to ensure safe operation of a pipeline\nfacility. Specifically, Neptune failed to have a procedure addressing notifications to PHMSA of\nchanges in accordance with § 191.22(c).\nDuring the inspection PHMSA requested Neptune’s procedures regarding reporting of changes\nand was provided Neptune’s Neptune LNG Deepwater Port: Operations, Maintenance, and\n\n\n\nEmergency Response Procedure Manual: Appendix “J” To The Neptune Deepwater Port\nOperations Manual, dated May 2020 (O&M). Specifically, Section 1 in the O&M, Reporting\nProcedures – 49 CFR 192.605(b)(4), failed to include a process for reporting changes in entity,\nacquisition/divestiture, and construction/update/uprate. Processes should include an itemization\nof the types of activities or events in which PHMSA must be notified, and the time frame in which\nthe notifications must be made. Additionally, the website listed in the procedure failed to take the\nuser to the appropriate place to meet the reporting requirements of § 191.22(c).\nTherefore, Neptune’s written reporting procedures were inadequate to ensure safe operation of a\npipeline facility in accordance with § 191.22(c). Neptune must revise its procedures to address\nthis deficiency.\n2. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(b) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following,\nif applicable, to provide safety during maintenance and operations.\n(1) Operating, maintaining, and repairing the pipeline in\naccordance with each of the requirements of this subpart and Subpart\nM of this part.\nNeptune’s written procedures for maintenance and normal operations were inadequate to ensure\nsafe operation of a pipeline facility in accordance with § 192.605(b)(1). Specifically, the\nAbandonment or Deactivation Procedures in the O&M failed to include sufficient details\nregarding the requirements for the abandonment and deactivation of pipelines and facilities\nidentified in § 192.727(g)(1).\n1\n1 § 192.727 Abandonment or deactivation of facilities.\n(a) …\n(g) For each abandoned offshore pipeline facility or each abandoned onshore pipeline facility that crosses over, under\nor through a commercially navigable waterway, the last operator of that facility must file a report upon abandonment\nof that facility.\n(1) The preferred method to submit data on pipeline facilities abandoned after October 10, 2000 is to the National\nPipeline Mapping System (NPMS) in accordance with the NPMS “Standards for Pipeline and Liquefied Natural Gas\nOperator Submissions.” To obtain a copy of the NPMS Standards, please refer to the NPMS homepage at\nhttp://www npms.phmsa.dot.gov or contact the NPMS National Repository at 703-317-3073. A digital data format is\npreferred, but hard copy submissions are acceptable if they comply with the NPMS Standards. In addition to the\nNPMS-required attributes, operators must submit the date of abandonment, diameter, method of abandonment, and\ncertification that, to the best of the operator's knowledge, all of the reasonably available information requested was\nprovided and, to the best of the operator's knowledge, the abandonment was completed in accordance with applicable\nlaws. Refer to the NPMS Standards for details in preparing your data for submission. The NPMS Standards also\ninclude details of how to submit data. Alternatively, operators may submit reports by mail, fax or e-mail to the Pipeline\nand Hazardous Materials Safety Administration, U.S. Department of Transportation, PHP-10, 1200 New Jersey\nAvenue, SE., Washington, DC 20590; fax (202) 366-4566; e-mail InformationResourcesManager@phmsa.dot.gov.\nThe information in the report must contain all reasonably available information related to the facility, including\ninformation in the possession of a third party. The report must contain the location, size, date, method of abandonment,\nand a certification that the facility has been abandoned in accordance with all applicable laws.\n\n\n\nDuring the inspection PHMSA reviewed Neptune’s O&M. The O&M failed to adequately detail\na process for the abandonment and deactivation of pipelines and facilities. The O&M failed to\nstate how to file an abandonment and deactivation report, who must file the report, and when it\nmust be done. The O&M also failed to include details such as how to submit mapped facilities to\nthe National Pipeline Mapping System and what information must be submitted, such as the\nlocation of the facility, size, date, and method of abandonment.\nTherefore, Neptune’s written procedures for maintenance and normal operations were inadequate\nto ensure safe operation of a pipeline facility in accordance with §§ 192.605(b)(1) and\n192.727(g)(1). Neptune must revise its procedures to address this deficiency.\n3. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(b) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following,\nif applicable, to provide safety during maintenance and operations.\n(1) Operating, maintaining, and repairing the pipeline in\naccordance with each of the requirements of this subpart and Subpart\nM of this part.\nNeptune’s written procedures for maintenance and normal operations were inadequate to ensure\nsafe operation of a pipeline facility in accordance with § 192.605(b)(1). Specifically, Neptune’s\nO&M failed to include sufficient detail regarding a process for determining the maximum\nallowable operating pressure (MAOP) of a pipeline segment in accordance with § 192.619(a).\n2\nDuring the inspection PHMSA reviewed the MAOP Procedures in the O&M. The O&M failed to\ninclude a process for determining the MAOP for a pipeline segment in accordance with §\n192.619(a). Specifically, the O&M failed to include processes or requirements for identifying\nconditions which may limit MAOP. Conditions that may limit MAOP include, but are not limited\nto:\n1. The design pressure of the weakest element in the segment as determined in accordance\nwith Part 192, Subparts C and D.\n2. The pressure obtained by test pressures that incorporate safety factors that are\ncommensurate with the established class location in accordance with § 192.619(a)(2)(ii).\nTherefore, Neptune’s written procedures for maintenance and normal operations were inadequate\nto ensure safe operation of a pipeline facility in accordance with §§ 192.605(b)(1) and 192.619(a).\nNeptune must revise its procedures to address this deficiency.\n4. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n2 § 192.619 Maximum allowable operating pressure: Steel or plastic pipelines.\n(a) No person may operate a segment of steel or plastic pipeline at a pressure that exceeds a maximum allowable\noperating pressure (MAOP) determined under paragraph (c), (d), or (e) of this section, or the lowest of the following:\n\n\n\n(a) …\n(b) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following,\nif applicable, to provide safety during maintenance and operations.\n(1) Operating, maintaining, and repairing the pipeline in\naccordance with each of the requirements of this subpart and Subpart\nM of this part.\nNeptune’s written procedures for maintenance and normal operations were inadequate to ensure\nsafe operation of a pipeline facility in accordance with § 192.605(b)(1). Specifically, Item 3 in the\nField Repair Procedure in the O&M failed to include sufficient details regarding making\npermanent field repairs of leaks for submerged pipeline facilities pursuant to § 192.717(b)(4).\n3\nDuring the inspection PHMSA reviewed Neptune’s O&M. The O&M guidance for repairs to\nlocalized corrosion was limited to a reference to § 192.717 and provided inadequate guidance that\nstated “an experienced contractor qualified in this type of repair will be utilized.\n” The O&M failed\nto include a detailed process for making permanent field repairs of leaks on submerged\ntransmission lines in accordance with § 192.717(b)(4).\nTherefore, Neptune’s written procedures for maintenance and normal operations were inadequate\nto ensure safe operation of a pipeline facility in accordance with §§ 192.605(b)(1) and\n192.717(b)(4). Neptune must revise its procedures to address this deficiency.\n5. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(b) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following,\nif applicable, to provide safety during maintenance and operations.\n(1) Operating, maintaining, and repairing the pipeline in\naccordance with each of the requirements of this subpart and Subpart\nM of this part.\nNeptune’s written procedures for maintenance and normal operations were inadequate to ensure\nsafe operation of a pipeline facility in accordance with § 192.605(b)(1). Specifically, Neptune’s\nO&M failed to include a process for the purging of pipelines in accordance with § 192.629(a).\n4\n3 § 192.717 Transmission lines: Permanent field repair of leaks.\nEach permanent field repair of a leak on a transmission line must be made by-\n(a) …\n(b) Repairing the leak by one of the following methods:\n(1) …\n(4) If the leak is on a submerged offshore pipeline or submerged pipeline in inland navigable waters, mechanically\napply a full encirclement split sleeve of appropriate design.\n4 § 192.629 Purging of pipelines.\n(a) When a pipeline is being purged of air by use of gas, the gas must be released into one end of the line in a moderately\nrapid and continuous flow. If gas cannot be supplied in sufficient quantity to prevent the formation of a hazardous\nmixture of gas and air, a slug of inert gas must be released into the line before the gas.\n\n\n\nDuring the inspection PHMSA reviewed the Pipeline Purging Procedures in the O&M. This\nsection failed to include a detailed process that describes how to purge the pipeline when it is\nremoved from and placed back into service. The O&M failed to include details such as:\n• Measured levels of gas in air or inert medium mixtures.\n• Identifying the location of purge points.\n• Use of critical valves to control flow.\n• The manner by which turbulent flow would be achieved (e.g., calculated purging velocity\nto assure turbulent flow).\n• Calculated times needed to assure purge.\n• Qualifications required for performing purging and operating valves.\n• Recordkeeping requirements for all purging data.\nTherefore, Neptune’s written procedures for maintenance and normal operations were inadequate\nto ensure safe operation of a pipeline facility in accordance with §§ 192.605(b)(1) and 192.629(a).\nNeptune must revise its procedures to address this deficiency.\n6. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(b) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following,\nif applicable, to provide safety during maintenance and operations.\n(1) …\n(2) Controlling corrosion in accordance with the operations and\nmaintenance requirements of Subpart I of this part.\nNeptune’s written procedures for maintenance and normal operations were inadequate to ensure\nsafe operation of a pipeline facility in accordance with § 192.605(b)(2). Specifically, Neptune’s\nO&M failed to include sufficient details regarding requirements for the design, installation,\noperation, and maintenance of cathodic protection systems, to be carried out by, or under the\ndirection of, a person qualified in pipeline corrosion control methods as required by § 192.453.\n5\nDuring the inspection PHMSA reviewed Neptune’s O&M. Item 1 in the Corrosion Control\nProcedures in the O&M failed to include a process requiring corrosion control to be carried out\nby, or under the direction of, qualified personnel, as required by § 192.453. The O&M failed to\ninclude a definition or list of criteria defining what a qualified person is, or specifically identifying\nthe position or individuals performing these functions. Additionally, the O&M did not identify\nwhat documentation is needed to substantiate qualification(s).\n5 § 192.453 General.\nThe corrosion control procedures required by § 192.605(b)(2), including those for the design, installation, operation,\nand maintenance of cathodic protection systems, must be carried out by, or under the direction of, a person qualified\nin pipeline corrosion control methods.\n\n\n\nTherefore, Neptune’s written procedures for maintenance and normal operations were inadequate\nto ensure safe operation of a pipeline facility in accordance with §§ 192.605(b)(2) and 192.453.\nNeptune must revise its procedures to address this deficiency.\n7. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(b) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following,\nif applicable, to provide safety during maintenance and operations.\n(1) …\n(3) Making construction records, maps, and operating history\navailable to appropriate operating personnel.\nNeptune’s written procedures for maintenance and normal operations were inadequate to ensure\nsafe operation of a pipeline facility. Specifically, Neptune’s O&M failed to include detailed\nprocedures for making construction records, maps, and operating history available to appropriate\noperating personnel in accordance with § 192.605(b)(3).\nDuring the inspection PHMSA reviewed Neptune’s O&M. Specifically, Item 3 in the Normal\nOperating and Maintenance Procedures in the O&M failed to include detailed procedures for\nmaking construction records, maps, and operating history available to appropriate operating\npersonnel. The O&M included limited or no details on what key records are maintained, which\nkey operating personnel have access to the records, and how the records are stored and retrieved.\nThese records may include: pipeline system maps; maximum allowable operating pressures; pipe,\nvalves and fittings data; pressure and temperature histories; maintenance history; emergency\nshutdown systems drawings; isolation drawings; purging information; operating parameters for\nequipment; and leak history.\nTherefore, Neptune’s written procedures for maintenance and normal operations were inadequate\nto ensure safe operation of a pipeline facility in accordance with § 192.605(b)(3). Neptune must\nrevise its procedures to address this deficiency.\n8. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(b) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following,\nif applicable, to provide safety during maintenance and operations.\n(1) …\n(8) Periodically reviewing the work done by operator personnel to\ndetermine the effectiveness and adequacy of the procedures used in\nnormal operation and maintenance and modifying the procedures\nwhen deficiencies are found.\nNeptune’s written procedures for maintenance and normal operations were inadequate to ensure\nsafe operation of a pipeline facility. Specifically, Neptune’s O&M failed to include a detailed\nprocedure for periodically reviewing the work done by operator personnel to determine the\n\n\n\neffectiveness and adequacy of the procedures used in normal operation and maintenance and\nmodifying the procedures when deficiencies are found in accordance with § 192.605(b)(8).\nDuring the inspection PHMSA reviewed Neptune’s O&M. Specifically, Item 5 in the Normal\nOperating and Maintenance Procedures in the O&M failed to indicate how the periodic review is\nconducted and documented. The nature and type of work or procedure reviewed should be\ndocumented.\nTherefore, Neptune’s written procedures for maintenance and normal operations were inadequate\nto ensure safe operation of a pipeline facility in accordance with § 192.605(b)(8). Neptune must\nrevise its procedures to address this deficiency.\n9. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(c) Abnormal operation. For transmission lines, the manual\nrequired by paragraph (a) of this section must include procedures for\nthe following to provide safety when operating design limits have been\nexceeded:\n(1) …\n(2) Checking variations from normal operation after abnormal\noperation has ended at sufficient critical locations in the system to\ndetermine continued integrity and safe operation.\n(3) Notifying responsible operator personnel when notice of an\nabnormal operation is received.\nNeptune’s written procedures for maintenance and normal operations were inadequate to ensure\nsafe operation of a pipeline facility. Specifically, Neptune’s O&M failed to include procedures to\nprovide safety when operating design limits have been exceeded in accordance with\n§ 192.605(c)(2) and (c)(3).\nDuring the inspection PHMSA reviewed Neptune’s O&M regarding abnormal operations\nprocedures and noted the following inadequacies:\n1. Item 6 in the Abnormal Operating Procedures in the O&M failed to include a detailed\nprocess for checking variations from normal operation after abnormal operation has ended\nat sufficient critical locations in the system to determine continued integrity and safe\noperation. Specifically, the O&M failed to include a detailed process for checking\nvariations from normal operation, including identification of the personnel that will\ninvestigate the abnormal operating condition, and if/how follow-up monitoring will be\nconducted to assure the abnormal condition will not repeat itself in accordance with §\n192.605(c)(2).\n2. The O&M failed to include a detailed process for notifying responsible operator personnel\nwhen notice of an abnormal operation is received in accordance with § 192.605(c)(3).\nSpecifically, Item 7 in the Abnormal Operating Procedures in the O&M failed to identify\nthe person-in-charge (PIC) or a process for identifying the PIC. Further, the O&M failed\n\n\n\nto include a contact number or identify the specific person or department at Enbridge that\nmust be contacted in the event of an abnormal operation. The O&M failed to indicate how\nabnormal operations would be reported while there are no LNG deliveries at port.\nTherefore, Neptune’s written procedures for maintenance and normal operations were inadequate\nto ensure safe operation of a pipeline facility in accordance with § 192.605(c)(2) and (c)(3).\nNeptune must revise its procedures to address these deficiencies.\n10. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(e) Surveillance, emergency response, and accident investigation.\nThe procedures required by §§ 192.613(a), 192.615, and 192.617 must\nbe included in the manual required by paragraph (a) of this section.\nNeptune’s written procedures for emergency response were inadequate to ensure safe operation of\na pipeline facility in accordance with § 192.605(e). Specifically, Neptune’s O&M failed to include\nsufficient details or a process regarding how it would maintain liaison with appropriate fire, police,\nand other officials to comply with the requirements of § 192.615(c).6\nDuring the inspection PHMSA reviewed Neptune’s O&M. Specifically, Item 15 in the Emergency\nProcedures in the O&M failed to adequately include a process with detailed steps for establishing\nand maintaining liaison with appropriate fire, police, and other public officials in accordance with\n§ 192.615(c)(1)-(4).\nFurthermore, Item 15 in the Emergency Procedures in the O&M stated that “the annual drill\nrequirement will be waived until such time as operations under the MARAD license issued to the\nPort are fully reactivated. During this waiver period, any changes to the Port including but not\nlimited to operational or physical shall be communicated to the appropriate public officials as soon\nas practicable.” While port operations may be suspended by MARAD, the Neptune pipeline\nremains active. As such, it is subject to the requirements of Part 192. Therefore, Neptune must\ncomply with the liaison requirements in § 192.615(c) even if port operations are suspended by\nMARAD.\nTherefore, Neptune’s written procedures for emergency response were inadequate to ensure safe\noperation of a pipeline facility in accordance with §§ 192.605(e) and 192.615(c). Neptune must\nrevise its procedures to address these deficiencies.\n11. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n6 § 192.615 Emergency Plans.\n(a) …\n(c) Each operator shall establish and maintain liaison with appropriate fire, police, and other public officials to:\n(1) Learn the responsibility and resources of each government organization that may respond to a gas pipeline\nemergency;\n(2) Acquaint the officials with the operator's ability in responding to a gas pipeline emergency;\n(3) Identify the types of gas pipeline emergencies of which the operator notifies the officials; and\n(4) Plan how the operator and officials can engage in mutual assistance to minimize hazards to life or property.\n\n\n\n(a) …\n(e) Surveillance, emergency response, and accident investigation.\nThe procedures required by §§ 192.613(a), 192.615, and 192.617 must\nbe included in the manual required by paragraph (a) of this section.\nNeptune’s written procedures for emergency response were inadequate to ensure safe operation of\na pipeline facility in accordance with § 192.605(e). Specifically, Neptune’s O&M failed to include\nsufficient details regarding the review of employee activities to determine whether procedures\nwere effectively followed in each emergency in accordance with § 192.615(b)(3).\n7\nDuring the inspection PHMSA reviewed Neptune’s O&M. Item 14 of the Emergency Procedures\nin the O&M failed to detail the step-by-step review process used by Neptune to determine whether\nprocedures were effectively followed in each emergency.\nTherefore, Neptune’s written procedures for emergency response were inadequate to ensure safe\noperation of a pipeline facility in accordance with §§ 192.605(e) and 192.615(b)(3). Neptune must\nrevise its procedures to address this deficiency.\n12. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(e) Surveillance, emergency response, and accident investigation.\nThe procedures required by §§ 192.613(a), 192.615, and 192.617 must\nbe included in the manual required by paragraph (a) of this section.\nNeptune’s written procedures for emergency response were inadequate to ensure safe operation of\na pipeline facility in accordance with § 192.605(e). Specifically, Neptune’s O&M failed to include\na process for training appropriate operating personnel to assure they are knowledgeable of the\nemergency procedures and verifying the effectiveness of the procedures in accordance with\n§ 192.615(b)(2).\n8\nDuring the inspection PHMSA reviewed Neptune’s O&M. Item 13 in the Emergency Procedures\nin the O&M failed to include a process to train the appropriate operating personnel to assure that\nthey are knowledgeable of the emergency procedures and verify that the training is effective as\nrequired by § 192.615(b)(2).\n7 § 192.615 Emergency plans.\n(a) …\n(b) Each operator shall:\n(1) …\n(3) Review employee activities to determine whether the procedures were effectively followed in each emergency.\n8 § 192.615 Emergency plans.\n(a) …\n(b) Each operator shall:\n(1) …\n(2) Train the appropriate operating personnel to assure that they are knowledgeable of the emergency procedures and\nverify that the training is effective.\n\n\n\nTherefore, Neptune’s written procedures for emergency response were inadequate to ensure safe\noperation of a pipeline facility in accordance with §§ 192.605(e) and 192.615(b)(2). Neptune must\nrevise its procedures to address these deficiencies.\n13. § 192.613 Continuing surveillance.\n(a) Each operator shall have a procedure for continuing\nsurveillance of its facilities to determine and take appropriate action\nconcerning changes in class location, failures, leakage history,\ncorrosion, substantial changes in cathodic protection requirements,\nand other unusual operating and maintenance conditions.\nNeptune’s written procedures were inadequate to ensure safe operation of a pipeline facility.\nSpecifically, Neptune’s O&M failed to include sufficient details regarding performing continuing\nsurveillance of its facilities in accordance with § 192.613.\nDuring the inspection PHMSA reviewed Neptune’s O&M. Specifically, Items 1 and 2 in the\nContinuing Surveillance Procedures in the O&M failed to include a process for performing\ncontinuing surveillance of pipeline facilities, and also for reconditioning, phasing out, or reducing\nthe MAOP in a pipeline segment that is determined to be in unsatisfactory condition, but no\nimmediate hazard exists in accordance with § 192.613(b).\n9\nItem 1 in the Continuing Surveillance Procedures in the O&M failed to include continual\nprocesses for identifying threats to the pipeline located on the outer continental shelf. The O&M\nfailed to provide details of what conditions would be monitored or what form or process would be\nused to record as found conditions from surveillance.\nItem 2 in the Continuing Surveillance Procedures in the O&M failed to include continual\nprocesses for identifying the personnel, reporting requirements, or qualifications if the pipeline is\nfound to be in unsatisfactory condition requiring MAOP to be reduced, or other actions to be taken.\nTherefore, Neptune’s written procedures were inadequate to ensure safe operation of a pipeline\nfacility in accordance with § 192.613. Neptune must revise its procedures to address these\ndeficiencies.\n14. § 192.615 Emergency plans.\n(a) Each operator shall establish written procedures to minimize\nthe hazard resulting from a gas pipeline emergency. At a minimum,\nthe procedures must provide for the following:\n(1) Receiving, identifying, and classifying notices of events which\nrequire immediate response by the operator.\n9 § 192.613 Continuing surveillance.\n(a) …\n(b) If a segment of pipeline is determined to be in unsatisfactory condition but no immediate hazard exists, the operator\nshall initiate a program to recondition or phase out the segment involved, or, if the segment cannot be reconditioned\nor phased out, reduce the maximum allowable operating pressure in accordance with § 192.619 (a) and (b).\n\n\n\n(2) …\n(3) …\n(4) The availability of personnel, equipment, tools, and materials,\nas needed at the scene of an emergency.\n(5) …\n(6) Emergency shutdown and pressure reduction in any section of\nthe operator’s pipeline system necessary to minimize hazards to life or\nproperty.\n(7) …\n(8) Notifying appropriate fire, police, and other public officials of\ngas pipeline emergencies and coordinating with them both planned\nresponses and actual responses during an emergency.\nNeptune’s written procedures for minimizing the hazards resulting from a gas pipeline emergency\nwere inadequate to ensure safe operation of a pipeline facility. Specifically, Neptune’s O&M\nfailed to include sufficient details regarding various topics required under § 192.615(a)(1), (a)(4),\n(a)(6), and (a)(8).\nPHMSA reviewed the O&M and discovered the following inadequacies:\n1. The O&M failed to include a process for receiving, identifying, and classifying notices of\nevents which need immediate response as required by § 192.615(a)(1). Specifically, Item\n2 in the Emergency Procedures in the O&M did not include an emergency contact phone\nnumber or other means by which the operator receives notices of events which need\nimmediate response. The O&M failed to include a process for identifying who receives\ninitial notifications and how notifications are documented and communicated to those\nresponsible for identifying and classifying events that require immediate response.\n2. The O&M failed to include a process for ensuring the availability of personnel, equipment,\ntools, and materials as needed at the scene of an emergency as required by § 192.615(a)(4).\nSpecifically, Item 5 in the Emergency Procedures in the O&M failed to include a process\nfor ensuring the availability of personnel, equipment, tools, and materials as needed at the\nscene of an emergency “in the event when there is no [shuttle regasification vessel] at the\nPort and a [support vessel (SV)] is unavailable.” The O&M failed to identify specifically\nwhere the backup vessel is located, the operator of the backup vessel, or how it may be\nreached during an emergency. Furthermore, the O&M failed to identify the backup vessel\npersonnel and their qualifications to respond to a pipeline emergency. The O&M also\nfailed to identify the equipment, tools and materials that would be deployed in the event of\na pipeline emergency.\n3. The O&M failed to include a process for the emergency shutdown or pressure reduction in\nany section of pipeline system necessary to minimize the hazards to life of property as\nrequired by § 192.615(a)(6). Specifically, Item 7 in the Emergency Procedures in the\nO&M failed to identify or describe each emergency shut down system that controls gas\nflow to the pipeline. There was no identification of safety-related conditions that may\nrequire emergency shutdown or pressure reduction in any section of pipeline system\nnecessary to minimize the hazards to life of property. The O&M failed to identify the\ncircumstances that would require a shutdown. In addition, the O&M failed to identify\n\n\n\nadequate details of the pipeline shutdown procedure or where the pipeline shutdown\nprocedure is located or how it is activated.\n4. The O&M failed to include a process for notifying appropriate officials of gas pipeline\nemergencies and coordinating with them both planned responses and actual responses\nduring an emergency as required by § 192.615(a)(8). Specifically, Item 9 in the Emergency\nProcedures in the O&M failed to include a process for a planned response.\nTherefore, Neptune’s written procedures for minimizing the hazards resulting from a gas pipeline\nemergency were inadequate to ensure safe operation of a pipeline facility in accordance with\n§ 192.615(a)(1), (a)(4), (a)(6), and (a)(8). Neptune must revise its procedures to address these\ndeficiencies.\n15. § 192.805 Qualification program.\nEach operator shall have and follow a written qualification\nprogram. The program shall include provisions to:\n(a) Identify covered tasks;\nNeptune’s written operator qualification program was inadequate to ensure safe operation of a\npipeline facility. Specifically, Neptune’s Northeast Gas Association Operator Qualification\nCompliance Program, Rev. F, dated September 3, 2008 (OQ Plan) failed to include all covered\ntasks as required by § 192.805(a).\nDuring the inspection Neptune provided a presentation, Operator Qualification Neptune LNG,\nLLC, dated May 2021). Neptune indicated that this presentation, which outlines covered tasks,\nprocedures, and documents that Neptune actively uses, is primarily used as Neptune’s OQ\nprogram, rather than the OQ Plan. Neither the presentation nor any guidance for its use were\nincluded in the OQ Plan. In addition, Appendix B of the OQ Plan, List of Covered Tasks with\nAnalysis failed to identify covered task # 5, Cathodic Protections, which is listed on the first slide\nof the presentation. Additionally, there are covered tasks identified in Appendix B of the OQ Plan\nthat are not covered in the presentation.\nTherefore, Neptune’s written operator qualification program was inadequate to ensure safe\noperation of a pipeline facility. Neptune must revise its OQ Plan to include all details of the\nprocess by which its personnel are trained and ensure that the covered tasks identified in the\npresentation are consistent with, and included in, the OQ Plan.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in Enforcement\nProceedings.\nPlease refer to this document and note the response options. Be advised that all material you\nsubmit in response to this enforcement action is subject to being made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. § 552(b), along with the complete original document you must provide a second copy of\n\n\n\nthe document with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment under\n5 U.S.C. § 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under § 190.211. If you do not respond within 30 days of\nreceipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice\nand authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice\nwithout further notice to you and to issue an Order Directing Amendment. If your plans or\nprocedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans\nor procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not contesting this\nNotice, we propose that you submit your amended procedures to my office within 30 days of\nreceipt of this Notice. This period may be extended by written request for good cause. Once the\ninadequacies identified herein have been addressed in your amended procedures, this enforcement\naction will be closed.\nIt is requested (not mandated) that Neptune LNG, LLC maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision of\nplans, procedures) and submit the total to Robert Burrough, Director, Eastern Region, Pipeline and\nHazardous Materials Safety Administration, 840 Bear Tavern Road, Suite 300, West Trenton, NJ\n08628. In correspondence concerning this matter, please refer to CPF 1-2022-048-NOA and, for\neach document you submit, please provide a copy in electronic format whenever possible. Smaller\nfiles may be emailed to robert.burrough@dot.gov. Larger files should be sent on USB flash drive\naccompanied by the original paper copy to the Eastern Region Office.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings\n\n12022048NOA_Closure Letter_06012023_(21-199005)_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nJune 1, 2023\nMr. Andre Cangucu\nPresident and Chief Executive Officer\nNeptune LNG LLC\n1360 Post Oak Blvd\nSuite 400\nHouston, TX 77056\nCPF 1-2022-048-NOA\nDear Mr. Cangucu:\nFrom June 7, 2021, through June 11, 2021, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\ninspected Neptune LNG, LLC’s (Neptune) procedures for its underwater facilities located on the\nouter continental shelf adjacent to Massachusetts Bay.\nAs a result of the inspection, Neptune was issued a Notice of Amendment (NOA), dated August\n18, 2022. In the NOA, PHMSA proposed that amendments to the procedures be submitted by\nNeptune within 30 days. In letter dated September 21, 2022, Neptune requested an additional (90)\ndays, no later than December 20, 2022, to submit a copy of its amended procedures. PHMSA\ngranted the request for a time extension made by Neptune in response letter from PHMSA to\nNeptune, dated September 29, 2022. Neptune submitted revised procedures with letter, dated\nDecember 19, 2022, absent the required OQ Manual updates. PHMSA requested further\namendment to the potential inadequacies defined in Items 3, 7, 9, 10, 14 and 15 of the NOA in\nletter dated February 7, 2023. Neptune requested time extension to further amend its procedures\nin letter dated February 17, 2023. PHMSA granted Neptune’s request for additional time to amend\nits procedures in letter dated February 24, 2023.\nNeptune provided PHMSA amended procedures on April 28th, 2023. My staff reviewed the further\namended procedures, and it appears that the inadequacies identified have been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\n\n\n\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nCc: Keith Crane, Senior Commercial Development, ENGIE Solutions\n<keith.crane@engie.com>","truncated":false,"body_characters":38981}