{"operation":"document","citation":"CPF 420173003M","title":"LAKE CHARLES LNG COMPANY, LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2017-02-21","effective_on":null,"summary":"CLOSED notice of amendment citing 191.22, 193.2011, 193.2509, 193.2511(c), 193.2605, 193.2623, 193.2633, 193.2637, 193.2903(c), 193.2911, 193.2917.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420173003m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420173003m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420173003m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420173003M","body":"Notice of Amendment involving LAKE CHARLES LNG COMPANY, LLC. PHMSA's enforcement data identifies the cited regulations as 191.22,  193.2011,  193.2509,  193.2511(c),  193.2605,  193.2623,  193.2633,  193.2637,  193.2903(c),  193.2911,  193.2917. The case was opened on 2017-02-21 and is reported as closed as of 2019-07-22. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420173003M_Closure Letter_07222019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420173003M/420173003M_Closure%20Letter_07222019.pdf\n\n420173003M_Closure Letter_07222019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420173003M/420173003M_Closure%20Letter_07222019_text.pdf\n\n420173003M_Notice of Amendment_02212017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420173003M/420173003M_Notice%20of%20Amendment_02212017.pdf\n\n420173003M_Notice of Amendment_02212017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420173003M/420173003M_Notice%20of%20Amendment_02212017_text.pdf\n\n420173003M_Operator Response to Notice_03222017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420173003M/420173003M_Operator%20Response%20to%20Notice_03222017.pdf\n\n420173003M_Closure Letter_07222019_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJuly 22, 2019\nDennis Odum\nVice President of Operations\nLake Charles LNG, LLC\n800 E. Sonterra Blvd.\nSan Antonio, Texas 78258\nCPF 4-2017-3003M\nDear Mr. Odum:\nOn September 15 – 16, 2015, a representative from the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code, conducted an on-\nsite pipeline safety inspection of the Lake Charles LNG, LLC (Lake Charles) procedures in Lake\nCharles, LA. As a result of the inspection, Lake Charles was issued a Notice of Amendment on\nFebruary 21, 2017. Lake Charles responded by letter on March 22, 2017, stating that the\nprocedures revisions identified during the inspection had been addressed. My staff reviewed the\namended procedures and it appears that the inadequacies outlined in this Notice of Amendment\nhave been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nMary. L. McDaniel, P.E\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n\n420173003M_Notice of Amendment_02212017_text.pdf\n\nNOTICE OF AMENDMENT\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nFebruary 21, 2017\nMr. Dennis Odum\nVP, Operations of the South and LNG Divisions\nLake Charles LNG Company, LLC\n800 E. Sonterra Blvd\nSan Antonio, TX 78258\nCPF 4-2017-3003M\nDear Mr. Odum:\nOn September 15 - 16, 2015, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected Lake\nCharles LNG Company, LLC (Lake Charles LNG, the Operator) procedures.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nLake Charles LNG plans or procedures, as described below:\n1. §193.2011 Reporting.\nIncidents, safety-related conditions, and annual pipeline summary data for LNG\nplants or facilities must be reported in accordance with the requirements of Part\n191 of this subchapter.\n§191.22 National Registry of Pipeline and LNG Operators.\n(a) OPID Request. Effective January 1, 2012, each operator of a gas pipeline, gas\npipeline facility, LNG plant or LNG facility must obtain from PHMSA an Operator\nIdentification Number (OPID). An OPID is assigned to an operator for the pipeline\nor pipeline system for which the operator has primary responsibility. To obtain on\nOPID, an operator must complete an OPID Assignment Request DOT Form\nPHMSA F 1000.1 through the National Registry of Pipeline and LNG Operators in\naccordance with § 191.7.\n\n\n\n(b) OPID validation. An operator who has already been assigned one or more OPID\nby January 1, 2011, must validate the information associated with each OPID\nthrough the National Registry of Pipeline and LNG Operators at\nhttp://opsweb.phmsa.dot.gov, and correct that information as necessary, no later\nthan June 30, 2012.\n(c) Changes. Each operator of a gas pipeline, gas pipeline facility, LNG plant or\nLNG facility must notify PHMSA electronically through the National Registry of\nPipeline and LNG Operators at http:// opsweb.phmsa.dot.gov of certain events.\n(1) An operator must notify PHMSA of any of the following events not later than 60\ndays before the event occurs:\n(i) Construction or any planned rehabilitation, replacement, modification, upgrade,\nuprate, or update of a facility, other than a section of line pipe, that costs $10 million\nor more. If 60 day notice is not feasible because of an emergency, an operator must\nnotify PHMSA as soon as practicable;\n(ii) Construction of 10 or more miles of a new pipeline; or\n(iii) Construction of a new LNG plant or LNG facility.\n(2) An operator must notify PHMSA of any of the following events not later than 60\ndays after the event occurs:\n(i) A change in the primary entity responsible (i.e., with an assigned OPID) for\nmanaging or administering a safety program required by this part covering pipeline\nfacilities operated under multiple OPIDs.\n(ii) A change in the name of the operator;\n(iii) A change in the entity (e.g., company, municipality) responsible for an existing\npipeline, pipeline segment, pipeline facility, or LNG facility;\n(iv) The acquisition or divestiture of 50 or more miles of a pipeline or pipeline\nsystem subject to Part 192 of this subchapter; or\n(v) The acquisition or divestiture of an existing LNG plant or LNG facility subject\nto Part 193 of this subchapter.\n(d) Reporting. An operator must use the OPID issued by PHMSA for all reporting\nrequirements covered under this subchapter and for submissions to the National\nPipeline Mapping System.\nAt the time of the PHMSA inspection, the Lake Charles LNG procedures did not include\nrequirements for obtaining and validating an OpID. Lake Charles LNG amended their\nprocedures after the inspection to address the issue and communicated this to PHMSA by\nemail dated September 28, 2015. PHMSA found the amended procedures acceptable.\n2. §193.2917 Warning Signs\n(a) Warning signs must be conspicuously placed along each protective enclosure at\nintervals so that at least one sign is recognizable at night from a distance of 30 m\n(100 ft.) from any way that could reasonably be used to approach the enclosure.\n(b) Signs must be marked with at least the following on a background of sharply\ncontrasting color: The words \"NO TRESPASSING\", or words of comparable\nmeaning.\n2\n\n\n\nAt the time of the PHMSA inspection, the Lake Charles LNG procedures for warning\nsigns did not include the requirement that the signs be recognizable at night from a\ndistance of 30m (100ft) and did not require the signs be marked with the words “NO\nTRESSPASSING”. Lake Charles LNG amended their procedures after the inspection to\naddress these issues and communicated this to PHMSA by email dated September 28,\n2015. PHMSA found the amended procedures acceptable.\n3. §193.2509 Emergency procedures\n(a) Each operator shall determine the types and places of emergencies other than\nfires that may reasonably be expected to occur at an LNG plant due to operating\nmalfunctions, structural collapse, personnel error, forces of nature, and activities\nadjacent to the plant.\n(b) To adequately handle each type of emergency identified under paragraph (a) of\nthis section and each fire emergency, each operator must follow one or more\nmanuals of written procedures. The procedures must provide for the following:\n(1) Responding to controllable emergencies, including notifying personnel and using\nequipment appropriate for handling the emergency.\n(2) Recognizing an uncontrollable emergency and taking action to minimize harm to\nthe public and personnel, including prompt notification of appropriate local officials\nof the emergency and possible need for evacuation of the public in the vicinity of the\nLNG plant.\n(3) Coordinating with appropriate local officials in preparation of an emergency\nevacuation plan, which sets forth the steps required to protect the public in the\nevent of an emergency, including catastrophic failure of an LNG storage tank.\n(4) Cooperating with appropriate local officials in evacuations and emergencies\nrequiring mutual assistance and keeping these officials advised of:\n(i) The LNG plant fire control equipment, its location, and quantity of units located\nthroughout the plant;\n(ii) Potential hazards at the plant, including fires;\n(iii) Communication and emergency control capabilities at the LNG plant; and,\n(iv) The status of each emergency.\nAt the time of the PHMSA inspection, the Lake Charles LNG procedures did not include\nadequate requirements for emergency coordination with public officials, particularly\nensuring that their reliance on local firefighting agencies was fully planned. This\nincluded confirming the firefighting agencies had adequate equipment and training to\nrespond to an emergency at the LNG facility and for the preparation of an emergency\nevacuation plan. Lake Charles LNG amended their procedures after the inspection to\naddress these issues and communicated this to PHMSA by email dated September 28,\n2015. PHMSA found the amended procedures acceptable.\n3\n\n\n\n4. §193.2511 Personnel safety\n(c) Each LNG plant must be equipped with suitable first-aid material, the location\nof which is clearly marked and readily available to personnel.\nAt the time of the PHMSA inspection, the Lake Charles LNG procedures did not specify\nthe locations and types of equipment to be included at each location. Lake Charles LNG\namended their procedures ater the inspection to address these issues and communicated\nthis to PHMSA by email dated September 28, 2015. PHMSA found the amended\nprocedures acceptable.\n5. §193.2623 Inspecting LNG storage tanks\nEach LNG storage tank must be inspected or tested to verify that each of the\nfollowing conditions does not impair the structural integrity or safety of the tank:\na) Foundation and tank movement during normal operation and after a major\nmeteorological or geophysical disturbance.\n(b) Inner tank leakage.\n(c) Effectiveness of insulation.\n(d) Frost heave.\nAt the time of the PHMSA inspection, the Lake Charles LNG Technical Procedures\nManual 7.11 included inspection requirements for structural integrity and leakage but did\nnot include the inspection intervals. Lake Charles LNG agreed to amend their\nprocedures after the inspection to address this issue and communicated this to PHMSA\nby email dated September 28, 2015. PHMSA requested a copy on May 27, 2016 that had\nbeen implemented by Lake Charles LNG using their Management of Change process.\nPHMSA found the amended procedures acceptable.\n6. §193.2633 Interference currents\n(a) Each component that is subject to electrical current interference must be\nprotected by a continuing program to minimize the detrimental effects of currents.\n(b) Each cathodic protection system must be designed and installed so as to\nminimize any adverse effects it might cause to adjacent metal components.\n(c) Each impressed current power source must be installed and maintained to\nprevent adverse interference with communications and control systems.\nAt the time of the PHMSA inspection, the Lake Charles LNG procedures did not include\nrequirements for testing and protecting pipelines and components from interference\ncurrents. Lake Charles LNG agreed to amend their procedures after the inspection to\ninclude a new Technical Procedure 8.13, “Interference Current Inspection” and\ncommunicated this to PHMSA by email dated September 28, 2015. PHMSA found the\namended procedures acceptable.\n4\n\n\n\n7. §193.2637 Remedial measures.\nPrompt corrective or remedial action must be taken whenever an operator learns by\ninspection or otherwise that atmospheric, external, or internal corrosion is not\ncontrolled as required by this subpart.\n§193.2605 Maintenance procedures.\n(a) Each operator shall determine and perform, consistent with generally accepted\nengineering practice, the periodic inspections or tests needed to meet the applicable\nrequirements of this subpart and to verify that components meet the maintenance\nstandards prescribed by this subpart.\n(b) Each operator shall follow one or more manuals of written procedures for the\nmaintenance of each component, including any required corrosion control. The\nprocedure must include:\n(1) The details of the inspections or tests determined under paragraph (a) of this\nsection and their frequency of performance; and\n(2) A description of other actions necessary to maintain the LNG plant according to\nthe requirements of this subpart.\n(c) Each operator shall include in the manual required by paragraph (b) of this\nsection instructions enabling personnel who perform operation and maintenance\nactivities to recognize conditions that potentially may be safety-related conditions\nthat are subject to the reporting requirements of §191.23 of this subchapter.\nAt the time of the PHMSA inspection, the Lake Charles LNG procedures did not specify\ntime frames for addressing any deficiencies found in atmospheric corrosion control.\nLake Charles LNG agreed to amend their procedures after the inspection, and revised\nparagraphs 8.2.3, 8.2.4, and Appendix A of Technical Procedure 8.2 “Atmospheric\nCorrosion Control” to address the time frames. PHMSA found the amended procedures\nacceptable.\n8. §193.2911 Security lighting\nWhere security warning systems are not provided for security monitoring under\n§193.2913, the area around the facilities listed under §193.2905(a) and each\nprotective enclosure must be illuminated with a minimum in service lighting\nintensity of not less than 2.2 lux (0.2 ftc) between sunset and sunrise.\nAt the time of the inspection, the Lake Charles LNG security lighting procedures did not\ninclude the requirement that for each protective enclosure where a warning system is not\nprovided, the area must be illuminated with a minimum in service lighting intensity of\nnot less than 2.2 lux (0.2 ftc) between sunset and sunrise. Lake Charles LNG agreed to\namend their procedures after the inspection and developed a new Maintenance Procedure\n124, “Perimeter Lighting and Warning Signs” to address the requirements. PHMSA\nfound the amended procedures acceptable.\n5\n\n\n\n9. §193.2903 Security procedures\nEach operator shall prepare and follow one or more manuals of written procedures\nto provide security for each LNG plant. The procedures must be available at the\nplant in accordance with §193.2017 and include at least:\n(c) A brief description of the duties associated with each security personnel position\nor responsibility.\nAt the time of the inspection, the Lake Charles LNG procedures did not address the\nspecific responsibilities of security personnel during an emergency. Lake Charles LNG\nagreed to amend their Emergency Response Manual to address this issue and added\nparagraph 3.8 to the Facility Security Plan specifying the responsibilities of security\npersonnel during an emergency. PHMSA found the amended procedures acceptable.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.237. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. Be\nadvised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies for\nconfidential treatment under 5 U.S.C. 552(b), along with the complete original document you\nmust provide a second copy of the document with the portions you believe qualify for\nconfidential treatment redacted and an explanation of why you believe the redacted information\nqualifies for confidential treatment under 5 U.S.C. 552(b). If you do not respond within 30 days\nof receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this\nNotice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in\nthis Notice without further notice to you and to issue a Final Order.\nIf, after opportunity for a hearing, your plans or procedures are found inadequate as alleged in\nthis Notice, you may be ordered to amend your plans or procedures to correct the inadequacies\n(49 C.F.R. § 190.237). If you are not contesting this Notice, we propose that you submit your\namended procedures to my office within [number of days] days of receipt of this Notice. This\nperiod may be extended by written request for good cause. Once the inadequacies identified\nherein have been addressed in your amended procedures, this enforcement action will be closed.\n6\n\n\n\nIt is requested (not mandated) that Lake Charles LNG maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision of\nplans, procedures) and submit the total to R. M. Seeley, Director, Southwest, Pipeline and\nHazardous Materials Safety Administration. In correspondence concerning this matter, please\nrefer to CPF 4-2017-3003M and, for each document you submit, please provide a copy in\nelectronic format whenever possible.\nSincerely,\nR. M. Seeley\nDirector, Southwest\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n7","truncated":false,"body_characters":17523}