{"operation":"document","citation":"CPF 420173001W","title":"FREEPORT LNG DEVELOPMENT, L.P. — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2017-01-12","effective_on":null,"summary":"CLOSED warning letter citing 195.1(a), 195.1(b)(3)(ii).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420173001w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420173001w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420173001w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420173001W","body":"Warning Letter involving FREEPORT LNG DEVELOPMENT, L.P.. PHMSA's enforcement data identifies the cited regulations as 195.1(a),  195.1(b)(3)(ii). The case was opened on 2017-01-12 and is reported as closed as of 2017-01-12. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420173001W_Warning Letter_01122017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420173001W/420173001W_Warning%20Letter_01122017.pdf\n\n420173001W_Warning Letter_01122017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420173001W/420173001W_Warning%20Letter_01122017_text.pdf\n\n420173001W_Warning Letter_01122017_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJanuary 12, 2017\nMr. Mark Mallett\nVice President\nFreeport LNG Development, L.P\n333 Clay Street, Suite 5050\nHouston, TX 77002\nCPF 4-2017-3001W\nDear Mr. Mallett:\nOn September 6, 2016, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code were onsite and\ninspected Freeport LNG (FLNG) Pre-Treatment Facility’s 8-inch natural gas liquids (NGL)\npipeline in Freeport Texas.\nAs a result of the inspection, it appears that you have committed probable violations of the Pipeline\nSafety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable\nviolation(s) are:\n1. §195.1 Which pipelines are covered by this Part?\n(a) Covered. Except for the pipelines listed in paragraph (b) of this Section, this Part\napplies to pipeline facilities and the transportation of hazardous liquids or carbon\ndioxide associated with those facilities in or affecting interstate or foreign commerce,\nincluding pipeline facilities on the Outer Continental Shelf (OCS). Covered pipelines\ninclude, but are not limited to:\n\n\n\n(b) Excepted. This Part does not apply to any of the following:\n(3) Transportation of a hazardous liquid through any of the following low-\nstress pipelines:\n(ii) A pipeline that serves refining, manufacturing, or truck, rail, or\nvessel terminal facilities, if the pipeline is less than one mile long (measured\noutside facility grounds) and does not cross an offshore area or a waterway\ncurrently used for commercial navigation;\nFreeport LNG (FLNG) failed to show that a 2.2 mile long 8-inch NGL pipeline meets the\nrequirement for an exception under §195.1 (b)(3)(ii). FLNG constructed a 2.2 mile long hazardous\nliquids pipeline designed to transport natural gas liquids from their pre-treatment facility near\nFreeport, TX to a truck loading facility near Texas Highway 523 and Jeffers Road. The operator\nthen claimed the pipeline was exempt from Part 195 Regulation because the length of the pipeline\noutside the facility was 0.92 miles. FLNG stated that they had acquired or leased property to\nincrease the pre-treatment facility site to over a mile across which reduced the length of the\nhazardous liquid pipeline to less than one mile.\nIn order to verify this, PHMSA requested the following documentation: FLNG’s survey\nprocedures, the surveyors training and qualifications records, field notes that were made during\nthe survey, the equipment used in order to conduct the survey and accompanying calibration\ncertificates, any GIS software used to conduct the survey, plot plans that show what areas will be\nfenced and what types of fencing will occur around the 8-inch NGL line, and easement agreements\nalong the length of the property that the 8-inch NGL traverses showing the operator controls the\nsite property, and “as-built” drawings of the pipeline.\nAccording to FLNG email response, the requested documents are not available or have not been\ndeveloped at the time of the inspection. As a result, FLNG failed to provide evidence to support\ntheir exception requirement of §195.1 (b)(3)(ii).\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $200,000\nper violation per day the violation persists up to a maximum of $2,000,000 for a related series of\nviolations. For violations occurring prior to January 4, 2012, the maximum penalty may not exceed\n$100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for a related\nseries of violations. We have reviewed the circumstances and supporting documents involved in\nthis case, and have decided not to conduct additional enforcement action or penalty assessment\nproceedings at this time. We advise you to correct the item(s) identified in this letter. Failure to\ndo so will result in Freeport LNG Development being subject to additional enforcement action.\n2\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 4-2017-3001W. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe the\nredacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nR. M. Seeley\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n3","truncated":false,"body_characters":5368}